HPL earnings up 52% at $150m

HIGHER hotel revenues and valuation gains pushed the net profit of Hotel Properties Ltd (HPL) 52 per cent higher to $150.1 million for the year ended Dec 31, 2007.

Group revenue increased 29 per cent to $459.8 million from the previous year, largely attributable to the group's hotels and resorts division. Earnings per share rose to 30.73 cents from 20.70 cents.

HPL said it continues to recognise further fair value gains from investment properties, which amounted to $101.1 million in FY2007.

With the fair value gains, pre-tax profit was $178.4 million. Excluding fair value gains, pre-tax profit would have been $77.3 million, it said.

The group's finance cost increased by 44.5 per cent to $40.8 million due to higher borrowings as a result of new investments, including participation in en bloc purchases.

HPL declared a final dividend of 5 cents per share per share.

It said the outlook for the tourism industry in Singapore and the region remains good. 'However, there will be challenges arising from the threat of a recession in the United States, the rise in inflation and tight credit environment.'

Source : Business Times - 1 Mar 2008