Hotel Properties (HPL) announced, on Aug 14, that it has appointed architects, Rogers Stirk Harbour + Partners (RSHP) and DP Architects, for the redevelopment of The Forum, voco Orchard and HPL House (known collectively as the properties).
RSHP is a London-headquartered architect known for its work on The LeadenHall Building, informally known as the Cheesegrater in London, and International Towers Sydney. DP Architects is headquartered in Singapore and known for its projects such as The Esplanade – Theatres on the Bay (Singapore) and Dubai Mall.
Both architects are slated to submit the revised redevelopment plans by Aug 24.
HPL had previously secured approval from authorities to redevelop the three properties in Orchard Road into a 1.23 million sq ft mixed-use development.
“Despite their age, all three properties occupy large, highly valuable and predominantly freehold land parcels in Orchard. As sites like these become increasingly scarce, they present a compelling opportunity for value creation through redevelopment and repositioning,” said DBS Group Research analysts Derek Tan and Tabitha Foo in a May 2 note.
While there have been media reports that HPL is in talks to sell majority stakes in The Forum and voco Orchard, HPL has stated in July that there is “no certainty” that the discussions will “result in any transaction”.
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The announcement came with HPL’s results for the 1HFY2025 ended June 30, where the group reported earnings of $11.4 million, reversing from a loss of $3.5 million in the 1HFY2024.
Revenue rose by 9% y-o-y to $378.4 million, while gross profit was up by 3.5% y-o-y to $85.2 million. The increase was mainly attributable to the opening of Four Seasons Osaka in August last year.
For the period, the group recorded a mark-to-market (MTM) fair value loss on long-term investments of $9.3 million. This is compared to the $5.5 million gain reported in the 1HFY2024.
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Finance costs inched up to $51 million from $50.2 million last year due to higher borrowings.
Share of profits of associates and jointly controlled entities surged to $7.7 million in the 1HFY2025, increasing from $1.1 million in the 1HFY2024. This is mainly due to share of a gain recorded by Paddington Square, London upon a favourable settlement of disputes with a certain tenant
According to the group, it expects to see dampened consumer sentiment and confidence, resulting in more cautious spending on the back of geopolitical trade tensions and ongoing conflicts.
“While central banks continue to adjust interest rates based on a range of economic indicators, the prevailing trajectory remains downward”, it adds.
In addition, the group also announced that it has completed the acquisition of Concorde Hotel & Shopping Mall on Aug 11, announced the company on Aug 14.
The group first announced the acquisition in November 2024 and received approval from the Strata Title Board to proceed with the acquisition in June this year.
Shares in HPL closed flat at $5.50 on Aug 14.
