FAQs

General

Do you have a dividend policy?

While there is no formal dividend policy, the Board may make dividend recommendations, taking into consideration factors such as the Group’s cash levels, actual and projected financial performance and balancing the needs between rewarding shareholders and investing in capital expenditure for long term growth.  

How can I obtain a copy of your Annual Report?

You may download a soft copy of our Annual Report from our Annual Report page and if you would like to request for a hard copy, please send your request to ir@prospercap.com.

Who can I reach if I’ve questions about ProsperCap?

You may send your queries to ir@prospercap.com.

What are the revenue sources in the hospitality business?

Our revenue streams include:

 

Accommodation: The primary source, generated from therental of hotel guestrooms and function rooms for corporate and conferencebookings

 

Food and Beverage: Sales to hotel guests, restaurantpatrons, and conference attendees, which play a significant role in overallrevenue

 

Recreational and Wellness Facilities: Income fromleisure centre and gym memberships, as well as spa treatments and relatedwellness services.

 

Other Ancillary Services: Revenue from laundry, carrental bookings, parking, valet, concierge services, and other guest-orientedofferings.

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What are your risks and how are they being managed?

The Company faces several types of risk, including:

 

Market risk: Mitigated through strategies thatreduce reliance on any single market or customer, ensuring diversification ofrevenue sources

 

Financial risk: Managed by strengthening bothshort-term and long-term financial positions. Previously, the Company had lessthan one year of funding secured; this has now been extended to several years

 

Interest rate risk: Effectively hedged

 

Currency risk: Although not hedged at thebalance sheet level, steps are being taken to diversify revenue streams,thereby reducing exposure to currency fluctuations

What is ProsperCap’s strategic business focus, and what strategies is it adopting to mitigate challenges and drive profitability in the short to medium term?

ProsperCap is a global real estate investment, capital and property management company based in Singapore. Its strategic focus is on investing in and managing the operations of hospitality and lodging-related businesses, with a strong emphasis on the social and environmental aspects of its investments.

 

In the short to medium term, ProsperCap’s strategy centres on four key areas:

 

Scale: Expand its portfolio to dilute fixed costs and improve operational efficiency. An investment committee has been formed to explore and analyse different growth scenarios

 

Revenue Growth: Outperform market norms by refining hotel offerings to match evolving consumer trends, implementing targeted asset management such as Hilton’s Property Improvement Plan and lift refurbishments and investing in upgrades to attract higher-paying clients and raise occupancy

 

Cost Optimisation: Control costs and margins, improve operational efficiencies, and achieve sustainable cost reductions or margin growth

 

Capital Structure Optimisation: Maintain a strong balance sheet and optimise the cost of debt financing through a prudent mix of debt and equity for acquisitions and asset enhancements

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Asset

Your hospitality assets are currently located in the United Kingdom. Are there plans to diversify into other countries and asset classes?

We are committed to the development of a portfolio of sustainable and resilient real estate asset classes across different geographies to drive value creation in the long run.

Which are the hotel brands that you currently work with and are there plans to work with other hospitality brands?

Our hospitality portfolio is operated under Hotel Franchise Agreements with Hilton, IHG and Marriott.  Yes, we will explore opportunities to work with other international hotel brands as and when the need/opportunity arises.

How does the Hotel Franchise Agreement work and what is the franchise fee?

Under each Hotel Franchise Agreement, the relevant Franchisor grants us a non-assignable, non-exclusive licence to use service marks, trademarks and logos and other elements designed to identify hotels and to associate the relevant hotel with the relevant brand.

We are required to pay the relevant Franchisor the applicable hotel franchise fees, which may vary between Hotel Franchise Agreements and may comprise multiple components, including royalty fees, programme fees and other fees with respect to marketing, reservations, and reward programmes, amongst others.

Do you have a target size of portfolio for the next three to five years?

We are actively seeking opportunities to boost our portfolio within the United Kingdom and other geographic regions.  This will be done strategically and prudently to drive value creation and maximise returns for our shareholders. As we progress, we will keep shareholders posted.