First Sponsor’s European operating income rises 14.8% in Q3

Property developer First Sponsor reported operating income of €17.2 million from its European portfolio for the third quarter, a 14.8 per cent increase from €14.9 million a year earlier. Full-quarter income from two recently acquired Amsterdam hotels drove the gain.

Crowne Plaza Amsterdam South, bought in April, and Andaz Amsterdam Prinsengracht, purchased in June, helped triple leased hotel income to €3.5 million. For the first nine months of 2026, European operating income reached €42.7 million, up 7.7 per cent from €39.6 million.

Quarterly revenue in Europe increased 5.1 per cent to €35.6 million. First Sponsor cited a more stable performance at Le Meridien Frankfurt following renovation and the opening of Puccini Milan in Italy. However, earnings before interest, taxes, depreciation and amortisation (Ebitda) declined 1.9 per cent to €7.8 million.

European hotel occupancy eased to 77.6 per cent from 78.9 per cent a year earlier, while the average daily rate increased 0.8 per cent to €132.2. Occupancy over the nine-month period held steady at 71.2 per cent.

In Chengdu, quarterly revenue fell 16.1 per cent to 14.4 million yuan. Occupancy dropped 6.2 percentage points to 41.3 per cent, and the average daily rate declined 7 per cent to 305 yuan. The group blamed continued economic weakness in China.

Despite tight cost controls, Chengdu hotel Ebitda dropped 52.4 per cent to 1.1 million yuan from 2.3 million yuan. First Sponsor attributed the decline mainly to lower room revenue, with weaker food and beverage revenue adding pressure.

The group said it had no outstanding China loans as at September 30 and remained cautious about new property financing opportunities there.