Sharp fall expected as Hospitality Property Fund reels in the embattled hotel market, warning that distributable earnings may be as much as 28% lower

Loan stock company Hospitality Property Fund yesterday reported a disappointing set of results for the year ended June, blaming an embattled hotel market, which is reeling from a weak economy

Hospitality Property Fund (HPA/HPB) said that trading conditions in the hotel industry remained challenging due to the continuing effects of restrained demand and oversupply of available room stock.

Hospitality Property Fund announced on Friday that its unitholders have passed all resolutions relating to the acquisition of Westin Grand Cape Town and Arabella Western Cape Hotel and Spa.

Hospitality Property Fund announced on Tuesday it had acquired Westin Grand Cape Town and Arabella Western Cape Hotel and Spa for R715.2 million.

While the short-term outlook for the hospitality industry is challenging, the 2010 Soccer World Cup is expected to provide a much-needed boost to hotel profits.

Hospitality Property Fund says total distributable earnings for the year ended June 30 decreased by 3% from 2008.

Property fund Hospitality says its distributions per linked A-unit for the six months to December were at 54.72c, up from the 52.11c reported for the previous period.

You’d struggle to find a better emblem of the bubbling conflicts of interest that scar the property industry than the Hospitality Property Fund — symptomatic of a sector where “anything goes” is almost a mission statement.

Hospitality Property Fund continues to exceed expectations on the back of favourable South African tourism and leisure conditions