Hotel Properties Limited - OCBC Investment 2016-08-12: 2Q profits up 8.5% YoY

Hotel Properties Limited - OCBC Investment 2016-08-12: 2Q profits up 8.5% YoY HOTEL PROPERTIES LTD H15.SI

Hotel Properties Limited - 2Q profits up 8.5% YoY

  • 2Q16 PATMI increased 8.5% YoY to S$13.2m despite revenues for the quarter dipping 20.8% to S$129.7m. 
  • The weaker topline was mainly due to lower contributions from Tomlinson Heights, softer demand seen at the group’s Maldives resorts and on-going refurbishment works at Four Seasons Resorts Maldives at Kuda Huraa. This was more than offset by lower costs and a stronger profit from associates and JVs in 2Q16 given strong contributions from the d’Leedon development at Farrer Road. 
  • Over the quarter, HPL also invested in an associate which completed the acquisition of two properties in London while another JV acquired The Nam Hai, a five-star beachfront resort in Vietnam. 
  • We judge this set of results to be broadly in line with expectations. 
  • Maintain BUY with an unchanged fair value estimate of S$4.83.




Eli Lee OCBC Investment | http://www.ocbcresearch.com/ 2016-08-12
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 4.830 Same 4.830


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