SINGAPORE (Aug 21): RHB Research is remaining positive on Amara on stronger contributions from its Singapore and Shanghai hotel operations as well as contributions from its Singapore property developments.
After its January soft launch, all 343 rooms of the Amara Signature Shanghai are open for bookings. The hotel has been marketed to both corporate and individual travellers via various marketing channels to reach higher occupancy levels. Amara also expects an increase in hotel demand as Shanghai continues its leading position as a major tourist destination.
To recap, Amara’s 1H18 earnings accounted for 26% of its full-year net profit estimate, while 2Q18 revenue was up 30% y-o-y. The Shanghai hotel operation was a contributing factor, as seen in the higher revenue from the hotel investment & management and property investment & development businesses.