GP Hotels

GP Hotels: 4Q14 net profit soared 61% to $8.4m, while revenue climbed 7.2% to $16m, from Parc Sovereign Hotel and Fragrance Hotel Pearl, offset by lower revenue from other hotels. Occupancy fell 6.9ppt to 81.4%, while RevPAR fell $5.5 to $86.8. Bottom line boosted by the reversion of overprovision of taxes in prior years, amounting $3.4m. On outlook, management acknowledges keen competition with an onslaught of new rooms. JLL expects 3,200 new rooms in Singapore this year. Perhaps a relief could come from an uptick in tourist arrivals as Singapore celebrates its golden jubilee and hosts the SEA Games this year. Final DPS of 0.5¢ declared GP hotels is trading at 0.5x P/B and 1.4% yield