Hotel Properties Ltd (HPL) reported a net loss attributable to shareholders of S$46.2 million for the 12 months ended 31 Dec 2025, reversing from a profit of S$27.2 million a year earlier, as higher finance costs and mark-to-market losses on long-term investments outweighed stronger hotel takings.

Group revenue rose 7.2 per cent year-on-year (YoY) to S$742.7 million, boosted mainly by the first full-year contribution from the Four Seasons Hotel Osaka, which opened in August 2024. Basic loss per share came in at 10.43 cents, compared with earnings of 3.86 cents in FY2024.

The board has proposed a first and final one-tier tax-exempt dividend of 4.0 cents per ordinary share, down from the 6.0 cents paid for FY2024 (which included a 2.0-cent special payout). The payment date and books-closure date will be announced after shareholder approval at the forthcoming AGM.

Performance by segment • Hotels: Revenue climbed 7.5 per cent YoY to S$719.8 million, generating profit before interest and tax (PBIT) of S$65.5 million, up from S$53.3 million. • Properties: Revenue was little changed at S$22.9 million, while PBIT narrowed sharply to S$2.2 million from S$40.0 million, reflecting the absence of last year’s S$38.7 million gain from the Brillia Tower Dojima project in Osaka. • Others: The segment recorded a wider loss before interest and tax of S$15.0 million (FY2024: S$2.8 million profit), weighed down by fair-value losses on investments.

Group finance costs edged up to S$108.2 million from S$105.6 million on higher borrowings, while the fair-value loss on investments widened to S$16.3 million from S$1.5 million. Share of losses from associates and joint ventures narrowed to S$15.7 million (FY2024: S$57.5 million) thanks to a favourable dispute settlement at London’s Paddington Square.

Headwinds Management attributed the swing to loss to the higher funding costs, the non-recurrence of last year’s one-off property gain, and weaker investment valuations. The group also incurred a full year of operating expenses for the recently opened Four Seasons Osaka and The Boathouse Pulau Tioman.

Strategic moves After the reporting date, HPL completed the S$140.9 million purchase of The Intercontinental Auckland, adding a freehold New Zealand asset to its portfolio. The group continues to invest in associates and joint ventures, injecting about S$20.6 million during the year.

Market outlook UN Tourism expects global tourist arrivals to grow a further 4 per cent in 2026, provided Asia-Pacific continues to recover and geopolitical risks do not escalate. HPL noted that lingering inflation in tourism-related services, volatile interest rates and macro-economic uncertainties could temper consumer sentiment, but the group remains cautiously optimistic on travel demand.