Hotel Properties falls into the red with S$39.1 million H1 net loss

Hotel Properties Limited (HPL) reported a net loss of S$39.1 million for its first half ended June 30, 2026, marking a shift from a net profit of S$11.4 million in the same period a year ago. Revenue for the half-year declined 1.9% to S$371.1 million, down from S$378.4 million in the previous half-year. Gross profit also fell 11.4% to S$75.4 million, compared to S$85.2 million in the prior half-year.

The conflict in the Middle East disrupted air travel and caused airfares to rise, negatively impacting travel demand. HPL attributed its financial performance to higher fuel prices, which increased operating costs in utilities, transportation, and other related expenses. Additionally, the company's performance was further affected by the absence of non-recurring items from the previous year.

HPL issued profit guidance on July 31, but its results were still underwhelming. Loss per share stood at S$0.0819, a significant reversal from S$0.0134 in H1 FY2025. Finance costs rose by 6.4% to S$54.3 million, driven by higher borrowings. Administrative expenses also increased to S$47.6 million, up from S$44.8 million in the prior year.

HPL anticipates that hotel operations will continue to face pressure due to elevated operating costs, including utilities, labor, procurement, and financing. Geopolitical uncertainties may delay the anticipated easing of interest rates. The company's stock price remained steady at S$4.70 prior to the release of the results.