Hotel Properties has reported earnings of $76.4 million for FY2022, a big swing from the loss of $7.7 million suffered in the preceding financial year ended Dec 31 2021.
Revenue increased by 52.7% to $525.5 million, as the property and hospitality firm enjoyed a strong recovery from the pandemic.
The company plans to pay a first and final dividend of 4 cents per share, plus a special dividend of 1 cent. For the preceding FY2021, HPL paid 4 cents.
Its NAV, as at Dec 31 2022, was $3.16, down from $3.25.
There were some negatives. Citing “market volatility”, HPL booked a fair value loss of $17.3 million on long term investments. In contrast, it booked a fair value gain of $45.1 million for FY2021.
Due to higher rates and additional borrowings, HPL’s financing costs increased from $34.7 million to $59.4 million.
“With Covid-19 being generally regarded as an endemic and opening of borders, international tourism is expected to continue its recovery trend.
“This is however subject to the state of the global economy as there are still challenges from political tensions, persistent inflation, rising interest rate, elevated commodity prices and logistic disruptions,” says HPL.
HPL shares closed Feb 24 at $3.58, unchanged for the day.
