This comes after the group posted a 54.5% year-on-year decline in net profit for H1
[SINGAPORE] Hotel Grand Central is expected to report a net loss for the financial year ended Dec 31, 2025.
The group said in a bourse filing on Monday (Feb 9) that this is mainly due to impairment losses related to the Hotel Grand Chancellor in Auckland and “certain investment properties” in Wellington, New Zealand.
“Excluding the effects of the impairment losses, the group remains operationally profitable in FY2025,” it added.
The company is expected to release its financial results by Mar 1.
For the first half ended Jun 30, 2025, Hotel Grand Central recorded a net profit of S$3.4 million, down 54.5 per cent from S$7.5 million for the corresponding period a year earlier.
The decline in H1 net profit was despite revenue rising 1.2 per cent year on year to S$68.8 million, and came on the back of lower operating profits arising from higher staff costs, depreciation and operational costs principally attributable to the Auckland hotel.
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Hotel Grand Central had said in August 2025 that the decrease was “compounded by” a higher foreign-exchange loss, lower interest income from fixed deposits due to lower interest rates, and higher interest expenses.
“The hotel (industries) in Singapore and New Zealand are expected to be highly competitive in 2025,” it added then. “Barring unforeseen circumstances, growth is expected in the Australia hotels compared to last year.”
Hotel Grand Central had also noted that the hotel industry in general continues to face increasing operating cost pressures, labour shortages, preparations for climate change and a high-interest-rate environment.
It pointed out that the relative strength of the Singdollar versus the Australian and New Zealand dollar in 2025 will “continue to impact the group’s performance”.
It also said that it would “continue to seek improvements” in revenue from hotel operations and review its operating costs in H2.
The company is expected to release its financial results by Mar 1.
Shares of Hotel Grand Central ended Monday flat at S$0.74.
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