Sagicor Real Estate X Fund Limited continued on its growth trajectory for the year ended December 2022, posting profit attributable to stockholder of $466 million, 24 per cent up on the financial year (FY) 2021.
The company’s performance for the financial year 2022 was strengthened by the hospitality sector’s continued rebound from travel restrictions and social distancing measures associated with COVID-19, which drove up revenues to $7.1 billion, $1.3 billion over the prior year’s performance. The majority of growth in revenues came from the hotel business, which is Sagicor X Fund’s core income earner.
“Sagicor X Fund’s solid performance continues to be driven by its hotel operations with an uptick in bookings and occupancy levels as a result of the ‘reopening’ of the sector and the easing of travel restrictions; after two challenging years and restrictions with travelling, there is a demand for leisure and business travels,” said Brenda-Lee Martin, CEO of Sagicor Real Estate X Fund.
For the 2022 financial year, Doubletree Orlando increased its profits to $566.98 million against a loss of $84.71 million in 2021. Additionally, the increasing demand for hotel accommodations led to occupancy levels growing year-over-year by 10 per cent since December 2021, to close at 93 per cent; higher than pre-pandemic levels of 91 per cent.
The real estate company also saw double-digit improvements in shareholders’ equity as at December 2022, moving from $16.6 billion for FY 2021 to $19.10 billion. The gain of 15 per cent or $2.5 billion over December 2021 was due to improvements on the revaluation of hotel property as the real estate market rebounds from the pandemic. Meanwhile, assets totalled $28.65 billion.
“The hotel’s strong performance was aided by good cost management strategies. Going forward we will continue to do our best to navigate any headwinds the market might bring, but we are optimistic that business within the hospitality sector will continue on an upward trajectory,” Martin said.
The US Travel Association has maintained its forecast for continued strengthening of domestic travel and improvement in business travel throughout 2023.
Sagicor X Fund continues to maintain exposure in the Jamaican commercial real estate market through its investment in the Sigma Real Estate portfolio. The company intends to continue improving shareholders value by investing in a diversified pool of real estate assets that show solid growth potential over the short to medium term.