High rates help BIL improve

High room rates across its hotel investments and lower borrowing costs helped to lift the performance of Singapore-based BIL International, the former investment vehicle of Sir Ron Brierley.

In the half year to the end of December, net assets per share rose from 63.2USc to 73.1USc, while net profit more than doubled from US$16.1 million ($22.6 million) to US$32.5 million.

Sales rose from US$134 million to US$172.3 million.

The all-round improvement in performance was rewarded with a 4Sc gain in the share price on the Singapore stock exchange to end the day at S$1.12.

Chief executive Arun Amarsi said all operations had contributed to the increase in profits.

He said the focus at its main investment, Thistle Hotels, was improving the brand and "increasing revenues while implementing cost efficiencies and reductions".

In October, the group opened the 1019-room Cumberland Hotel in London's Oxford St.

BIL agreed in December to share ownership of its UK Hotel Portfolio II venture equally with Atlantic Hotels Group and Morgan Stanley Dean Witter Principal Funding.

The UK Hotel Portfolio II company owns 31 of the 48 hotels in the UK.

Occupancy rates were stable and the average room rate was up nearly 7 per cent at 69.20 ($183).

BIL's other interests include Molokai properties on Molokai Island, Denarau Properties in Fiji and Bass Strait Oil and Gas Royalty in Australia.

- additional reporting agencies