SINGAPORE (Apr 30): Global Premium Hotels, one of Singapore’s largest chains of economy-tier and mid-tier hotels, said 1Q earnings fell 18.6% to $3.2 million from a year ago although revenue rose 7.2% to $14.8 million.

Hotel room revenue for 1Q increased by 6.9%. This was mainly due to contribution of $2.5 million from Parc Sovereign Hotel – Tyrwhitt and $0.4 million from Fragrance Hotel – Pearl, although this was partially offset by lower revenue of $2 million recognised from the remaining hotels including temporary closure of one hotel for assets enhancement works.

The group’s average occupancy rate (AOR) decreased to 79.5% from 86% and Revenue Per Available Room (RevPAR) decreased to $82.4 from $91.0.

Rental income for 1Q 2015 increased by 24.4%. This was mainly due to additional rental income from three commercial units within Parc Sovereign Hotel – Tyrwhitt.

With the projected flat visitor arrivals and expected modest growth for tourism receipts in 2015, Global Premium Hotels said the hospitality and tourism industry in Singapore is likely to continue to face tough challenges ahead.

But these concerns will be partially mitigated by the launch of the $20 million global marketing campaign to mark Singapore’s 50th birthday celebrations by STB and the 28th SEA Games to be held from June 5 to 16, which could potentially boost the tourist numbers in the coming months.

Global Premium Hotels closed 1 cent lower at 34 cents today.