Hotel Properties Limited (HPL) slipped into the red for the half year ended Jun 30, 2026, posting a net loss attributable to shareholders of S$39.07 million, compared with a profit of S$11.44 million a year earlier. Management cited weaker travel demand amid Middle East geopolitical tensions and higher operating costs as key factors behind the reversal.

Revenue eased 1.9 per cent year-on-year (YoY) to S$371.1 million, while basic loss per share came in at 8.19 Singapore cents against earnings of 1.34 cents in the prior-year period. The board did not declare an interim dividend, in line with its practice of paying only a final distribution.

By segment, hotels remained the main revenue contributor, generating S$360.0 million, down 2.1 per cent YoY. Property revenue slipped 3.2 per cent to S$11.1 million, while the “others” segment was negligible. In terms of operating profit before interest and tax, hotels delivered S$29.1 million (-26.4 per cent YoY), properties earned S$3.4 million (up from S$0.9 million), and the “others” segment booked a S$4.7 million loss. Group finance costs rose 6.4 per cent to S$54.3 million, reflecting higher borrowings, and the company recorded a S$4.8 million mark-to-market loss on long-term investments. The prior-year period had benefitted from a one-off S$27.3 million fair-value gain on Singapore’s Concorde Shopping Mall and a dispute settlement gain at London’s Paddington Square via an associate, neither of which recurred in 2026.

HPL completed the acquisition of a New Zealand company owning The InterContinental Auckland, funded in part by additional long-term deposits and new borrowings. It also raised S$148.9 million through an issuance of perpetual capital securities and drew down further revolving credit facilities, bringing total borrowings to S$1.90 billion as at end-June, up from S$1.73 billion six months earlier.

Looking ahead, HPL cautioned that elevated airfares, uncertainty over flight connectivity and higher energy, labour and financing costs could continue to weigh on hotel occupancy and margins. The group noted that global tourism faces headwinds from geopolitical tensions and economic pressures, and that expectations of interest-rate relief may be delayed. No quantitative guidance was provided.

With net current liabilities of S$128.7 million, management said the position is temporary, as most short-term debt can be refinanced and the group has committed revolving facilities to meet near-term obligations.