City Hotel Limited Q4: Heavy Losses Persist Despite Strong Revenue Base

City Hotel Limited (CITY) has published its audited Q4 results for FY 2024/25, showing that the company continues to struggle with losses despite maintaining a sizable revenue stream.

The company recorded a total revenue of Rs. 522.31 million, down 9.09% YoY compared to Rs. 582.39 million in Q4 FY 2023/24. On a quarterly trend, revenue fell by 16.91% in Q3 and 13.68% in Q2, reflecting weaker occupancy and hospitality income.

Gross profit stood at Rs. 150.26 million, with a margin of 28.77%, lower than the 35.20% margin in the same period last year. Cost pressures and declining revenue weighed on profitability.

CITY posted a net loss of Rs. 198.97 million in Q4, a continuation of past negative earnings, compared to a loss of Rs. 204.73 million a year earlier. The net margin was -38.09%, showing persistent financial stress despite gradual revenue stabilization.

On profitability ratios, Return on Assets (ROA) stood at -3.58%, while Return on Equity (ROE) was -13.83%, both indicating ongoing weak operational efficiency.

Earnings per share (EPS, annualized) remained in the red at -Rs. 11.89, while the price-to-earnings ratio (PE) stayed negative at -73.50, reflecting the market’s caution. However, book value per share declined to Rs. 80.83 from Rs. 94.56 last year, while the market value surged to Rs. 873.65, up significantly from Rs. 744.00 a year ago. This shows investor sentiment still values the hotel chain at a premium relative to its book worth, perhaps due to expectations of future recovery in Nepal’s tourism sector.

The company did not announce any dividend for this period.