FE HOTELS has released an announcement indicating that the group is expected to report a net loss of approximately HK$7 million for the financial year ending March 31, 2026.

This represents a significant narrowing of losses compared to the net loss of about HK$35 million recorded for the year ended March 31, 2025.

Based on current available information, the board attributes the anticipated improvement in the group's performance for this year primarily to the following factors: (i) an increase in gross profit driven by higher rental income and improved cost management; (ii) a reduction in the fair value loss on the group's investment properties compared to the previous year; and (iii) a reversal of provisions related to discontinued operations.