Hotel Properties Limited - DBS Research 2023-03-02: Hotel Recovery On Track!

Hotel Properties Limited - Hotel Recovery On Track!

Published:
HOTEL PROPERTIES LTD (SGX:H15) | SGinvestors.ioHOTEL PROPERTIES LTD (SGX:H15)

FY22 revenue came in line with expectations, backed by robust recovery in hotel operations.

  • - Read this at SGinvestors.io -
  • Based on our estimates, we estimate FY22 group RevPAR at ~S$397, which is at 92% of 2019’s levels and 92% of pre-pandemic average levels (average between 2007 to 2019).

However, net profit came in below our estimates, as the group saw cost pressures and higher interest rates.

  • - Read this at SGinvestors.io -
  • FY22 saw an exceptional gain of S$78m (versus FY21 of S$3.6m) because of fair value gain from investment properties; After excluding exceptional gains, FY22 net profit (pre-extraordinaries) narrowed its losses with a net loss of S$11.9m, a recovery from previous year’s loss of S$25.3m (versus our profit estimate of S$20.3m).
  • Net profit were below our estimates as Hotel Properties saw lower-than-expected gross margins of 20% (versus our estimate of 23%, versus 2019 gross margins of 25%) and higher-than-expected SG&A expenses at 17% of revenue (versus our estimates of 15%, versus 2019 SG&A expenses of 15.5%).
  • Moreover, interest expenses increased to S$59.4m (up from $34.7m in FY21), due to higher interest rates and additional borrowings to fund investments during the year. Estimated effective interest cost grew to 4.2% in FY22 (up from 3.1% in FY21).

Positive operational updates from mixed-use property development projects in London.

  • Read more at SGinvestors.io.




Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.




Elizabelle PANG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-03-02



Previous report by DBS:
2023-02-20 Hotel Properties - Unlock The Treasure Chest! Initiate Coverage With BUY.

Price targets by other brokers at Hotel Properties Limited Target Prices.

Listing of research reports at Hotel Properties Limited Analyst Reports.

Relevant links:
Hotel Properties Limited Share Price History,
Hotel Properties Limited Announcements,
Hotel Properties Limited Dividends & Corporate Actions,
Hotel Properties Limited News Articles





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