Hotel Properties Limited, whose managing director Ong Beng Seng is involved in the corruption case of former minister S Iswaran, has reported a surge in earnings for FY2023.
For the year ended Dec 2023, the company reported earnings of $561.0 million, versus $40.2 million reported for the preceding FY2022.
While the companyt enjoyed better operating numbers from the recovery of its hospitality businesses, the big chunk of the earnings growth came from $645 million in fair value gain on its Singapore investment properties.
Revenue in the same period was $642.1 million, up 22.2% from FY2022.
HPL plans to pay a first and final dividend of 4 cents plus a special dividend of 2 cents per share.
In its earnings commentary, HPL sees continued growth in international travel, which should bode well for its businesses.
"Although there is no indication of rate cuts by the Federal Reserve Board, with the easing of inflation, most are expecting interest rates to have peaked.
"Challenges however remain, with continuing geopolitical tensions and slowing down of global economic growth," adds HPL.
Last August, HPL has said it has received provisional permission from URA to redevelop a clutch of adjacent properties it owns along the prime Orchard Road belt, including the Forum, voco Orchard Singapore and HPL House.
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HPL intends to undertake a mixed development comprising hotel, retail, office and residential components, and is working on further detailed plans.
HPL shares last traded at $3.58, a relatively small discount off its NAV of $4.13 as of Dec 31 2023.
