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



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



Read also DBS's most recent report:
2025-05-02 Hotel Properties Limited - Unearthing Orchard’s Diamonds.

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 Dividend Payout Dates & Corporate Actions,
Hotel Properties Limited News






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