Sino Hotels rules out asset sale, expects lower interest charges

Sino Hotels (Holdings) has no plans to dispose of assets to reduce gearing and expects interest expenses to drop slightly in the light of stabilised interest rates, according to executive director Charles Lee Teck Chee.

The company, a locally listed vehicle of Singaporean chairman Robert Ng Chee Siong's Sino Group, had a gearing ratio of 35.85 per cent as of June 30.

Speaking after the company's annual meeting, Mr Lee said there were many options for trimming gearing but asset sales or fund-raising were unlikely at present.

Interest charges shot up last year amid the financial crisis but were falling this year, cutting interest expenses, he said.

Sino Hotels said interest expenses were $142.1 million for the year to June, against $71.54 million in the preceding year.

Mr Lee said the firm aimed to boost occupancy at its three hotels.

'The coming two years are expected to be difficult for the hotel industry, but things are picking up,' he said.