Hotel Properties Limited (HPL) is a Singapore-based investment group specialising in hotel ownership, management, and property development. The group has three operating segments:
1) Hotels, where the group operates hotels and shopping galleries, deriving income from the rental of rooms and shop units, the sale of food and beverages, and management fees.
2) Properties, where the group generates income from the rental and sales of residential properties and commercial units.
3) Others, which include distribution and retail operations, and activities relating to quoted and unquoted investments.
As of 31 December 2025, HPL owns interests in 41 hotels under renowned brands such as Four Seasons Hotels & Resorts, COMO Hotels & Resorts, IHG Hotels & Resorts, Six Senses Hotels & Resorts and Marriott International. The group’s operations span across 17 countries, including Singapore, the Maldives, the US, the UK, Italy, and Japan. Some of the group’s prominent luxury residential developments in Singapore include Robertson Blue, Tomlinson Heights, Scotts 28, and Four Seasons Park. The group also owns Forum the Shopping Mall and Concorde Shopping Mall in Singapore.
HPL plans on issuing new SGD NC5 perpetuals at an initial price guidance (IPG) of 4.60% for accredited and institutional investors only. These perpetuals come with reset dates at the end of 25 March 2031 and every 5 years thereafter, based on the prevailing SGD 5Y SORA-OIS (1.81% as of 18 March 2026) and a step-up margin of 1.0%. The proceeds from this issuance will be used for general corporate purposes, which include refinancing of borrowings and financing working capital of the issuer and its subsidiaries.
We previously covered HPL’s new issuance here: Hotel Properties Limited announces SGD 5Y senior unsecured notes at IPG of 4.650%
Core operations remain resilient
Consequently, after accounting for lower net fair value gains in investment properties of S$31.4m (FY2024: S$96.6m), the group recorded a loss for both its pre-tax and post-tax income of -S$38.9m and -S$56.5m, respectively, marking a turnaround from profitability in FY2024.
That said, we note that the group’s core operating performance remains stable. EBITDA (less net fair value gains) remained flat at S$132.6m (FY2024: S$128.5m), while net operating cash flow (OCF) rose 10% YoY to S$162.5m for FY2025 (FY2024: S$147.5m). This divergence in reported losses compared to cash generation and EBITDA is mainly due to non-cash items such as depreciation (S$94.7m) and fair value loss on the group’s investments (S$16.3m). In our view, the group’s operations remain resilient.
Credit Profile
Looking ahead, HPL has S$42.8m in borrowings coming due over the next year, a figure that is comfortably covered by the group’s cash on hand and its OCF. Therefore, we see little risk in the group being unable to meet its current obligations. We also highlight that the group recently increased its debt issuance programme limit to S$2.0b, which gives HPL the option to tap the bond market, if necessary.
Overall, HPL’s credit profile remains highly levered, which is something investors should consider. Any softening in the group’s operations and liquidity profile, which is a possibility as travel demand might soften given the recent escalation in the Middle East, would further worsen the group’s credit metrics and credit profile.
Table 1: Peer Comparison
|
Issue |
Issuer |
Ask Price |
Yield to Worst (%) |
Years to Call |
|
HPLSP new perp issue |
Hotel Properties Limited |
100.00 |
4.60% |
5.00 |
|
Hotel Properties Limited |
105.18 |
3.95% |
3.62 |
|
|
AIMS APAC REIT |
101.24 |
4.00% |
5.48 |
|
|
CapitaLand Ascott REIT |
103.60 |
3.42% |
5.03 |
|
|
ESR-REIT |
105.99 |
4.11% |
4.01 |
|
|
Standard Chartered PLC |
100.30 |
4.12% |
5.33 |
|
|
Data as of 18 March 2026. Source: Bondsupermart, iFAST compilations. |
||||
Overall, HPL’s credit profile remains stable, albeit still levered. Our analysis below uses the 4.60% IPG as the reference, though the final price guidance (FPG) is likely to come in below it.
In Table 1 above, we compare this new issuance with existing outstanding SGD perpetuals with a similar year-to-call. At a 4.60% yield, this new issue provides roughly 70bps of yield pickup compared to its outstanding perpetual. Compared to other outstanding SGD perpetuals, this 4.60% yield is decently attractive, even after accounting for the FPG to come in below the 4.60% IPG level. We note that the implied reset spread of HPL (roughly 3.79%) is higher than ESR-REIT (3.51%) and AIMS APAC REIT (2.59%).
Overall, we think this new perpetual offers decent income and could be suitable for investors who are comfortable with a slightly more levered issuer.
Declaration: At the time of publication of this report, IFPL (via its connected and associated entities) holds STANLN 4.300% Perpetual Corp (SGD) and the analyst who produced this report hold NIL positions in the abovementioned securities. This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.
