HOTEL ROYAL
̛Ө
ROYAL MEMORIES
26
A) HOTEL OPERATIONS
The Group owns and operates hotels, as well as
ancillary services such as food & beverage.
The Group started its first hotel in Singapore,
followed by hotels in Penang and Kuala Lumpur
in Malaysia. It then expanded its hotel footprint
to Bangkok, Thailand and added Burasari Resort
in Phuket to its portfolio. In 2015, it acquired The
Baba House in Melaka.
B) PROPERTY INVESTMENT
The Group owns investment properties in
Singapore, Malaysia and New Zealand that it
leases out for rental income.
C) FINANCIAL INVESTMENT
It also holds financial investments which comprise
financial assets such as shares, bonds, funds and
other financial products, to generate a stable
stream of income through interest and dividends,
and also for potential capital appreciation.
2015
2014
Change
$’000
$’000
%
Revenue
Hotel segment
47,574
46,800
1.7%
Properties segment
9,082
9,260
(1.9%)
Investment segment
624
627
(0.5%)
Total revenue
57,280
56,687
1.0%
Less: Cost of sales
(28,093)
( 26,683)
5.3%
Gross profit
29,187
30,004
(2.7%)
Less: Operating expenses
(15,795)
( 13,096)
20.6%
Add: Other income
2,193
3,561
(38.4%)
Less: Other expenses
(4,828)
( 2,575)
87.5%
Less: Finance costs
(5,124)
( 3,627)
41.3%
Profit before income tax
5,633
14,267
(60.5%)
Less: Income tax expense
(2,740)
( 3,089)
(11.3%)
Profit for the year attributable
to owners of the Company
2,893
11,178
(74.1%)
Consolidated Statement of Profit or Loss
(extract)
Year ended 31 December 2015
OPERAT IONS AND
FINANCIAL REVIEW
Hotel Royal Group is primarily engaged in the following business
activities:
