Hotel Royal (SGX:H12) Operating Margin %: 25.81% (As of Dec. 2025) — 18% Above Median


SGX:H12 Hotel Royal Ltd SGX:H12
80 GF Score
Price S$2.20
GF Value S$2.35
Valuation Fairly Valued
! 4 Warning Signs
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What is Hotel Royal Operating Margin %?

Hotel Royal SGX:H12 80 Operating Margin % is 25.81% as of Dec. 2025, which is 18% above its 10-year median of 21.90. GuruFocus rates SGX:H12 with a GF Score™ of 80/100 and a GF Value™ of S$2.35 (Fairly Valued). The stock has 4 warning signs investors should review. Among 841 Travel & Leisure companies, Hotel Royal ranks better than 84.66% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hotel Royal's Operating Income for the six months ended in Dec. 2025 was S$10.02 Mil. Hotel Royal's Revenue for the six months ended in Dec. 2025 was S$38.81 Mil. Therefore, Hotel Royal's Operating Margin % for the quarter that ended in Dec. 2025 was 25.81%.

The historical rank and industry rank for Hotel Royal's Operating Margin % or its related term are showing as below:

SGX:H12' s Operating Margin % Range Over the Past 10 Years
Min: -18.42   Med: 21.9   Max: 28.12
Current: 23.19


SGX:H12's Operating Margin % is ranked better than
84.66% of 841 companies
in the Travel & Leisure industry
Industry Median: 8.08 vs SGX:H12: 23.19

Hotel Royal's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Hotel Royal's Operating Income for the six months ended in Dec. 2025 was S$10.02 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was S$17.20 Mil.


Hotel Royal  (SGX:H12) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Hotel Royal Operating Margin % Related Terms


Hotel Royal Operating Margin % Historical Data

* Premium members only.

The historical data trend for Hotel Royal's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Hotel Royal Operating Margin % Chart

Hotel Royal Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -18.42 13.27 21.31 21.66 22.13

Hotel Royal Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.51 21.48 22.01 20.32 25.81

SGX:H12 vs MAR, HLT, H: Operating Margin % Comparison

For the Lodging subindustry, Hotel Royal's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hotel Royal Operating Margin % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hotel Royal's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hotel Royal's Operating Margin % falls into.


SGX:H12
80GF Score
Hotel Royal Ltd SGX:H12
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hotel Royal Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Hotel Royal's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=16.405 / 74.14
=22.13 %

Hotel Royal's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=10.017 / 38.812
=25.81 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 25.81% mean?
Hotel Royal (SGX:H12) has a Operating Margin % of 25.81% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hotel Royal and its competitors. This is 18% above median its historical median of 21.90. According to the industry distribution chart, Hotel Royal ranks #129 out of 841 companies in the Travel & Leisure industry, placing it in the top 15.3%.
Is Hotel Royal's Operating Margin % too high?
Hotel Royal's current Operating Margin % of 25.81% is 18% above median its 10-year median of 21.90. The Travel & Leisure industry median Operating Margin % is 8.08. Hotel Royal's value of 25.81% is 219.4% above this industry median. Based on the distribution chart, Hotel Royal ranks #129 out of 841 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Hotel Royal has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hotel Royal's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Hotel Royal ranks #129 out of 841 companies for Operating Margin %. This places Hotel Royal in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.08. Hotel Royal's value of 25.81% is 219.4% above this benchmark. While the company's 10-year median is 21.90 vs. the industry median of 8.08, Hotel Royal has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.08, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hotel Royal's current Operating Margin % of 25.81% is 219.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Hotel Royal and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotel Royal's current Operating Margin % is 25.81%, which is 18% above median its own 10-year median of 21.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotel Royal stock overvalued right now?
Based on GuruFocus' analysis, Hotel Royal (SGX:H12) is currently considered Fairly Valued. The stock's GF Value™ is S$2.35, compared to a current price of S$2.20 — trading 6.4% below its estimated fair value. The current Operating Margin % is 25.81%, which is 18% above median its 10-year median of 21.90 and 219.4% above the Travel & Leisure industry median of 8.08. Hotel Royal's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Hotel Royal (SGX:H12), the current Operating Margin % is 25.81% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hotel Royal (SGX:H12) Overvalued in 2026?

Based on GuruFocus' analysis, Hotel Royal stock appears to be undervalued. The current stock price of S$2.20 is trading 6.4% below its estimated GF Value™ of S$2.35. GuruFocus considers Hotel Royal to be Fairly Valued.

Key valuation signals for SGX:H12:

  • Operating Margin %: 25.81% (18% above median its 10-year median of 21.90)
  • GF Value™: S$2.35 vs. price of S$2.20 (6.4% below fair value)
  • GF Score™: 80/100 with 4 warning signs
  • Industry Position: 219.4% above the Travel & Leisure median (#129 of 841)

No single metric tells the full story. See the SGX:H12 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hotel Royal Business Description

Address 36 Newton Road, Singapore, SGP, 307964
Hotel Royal Ltd is in the business of hotel, property, and financial investment. It owns and operates the hotels under the Hotel Royal brand name and also provides ancillary services such as food and beverage. The group has hotel operations, property Investment and Financial investments segments. It owns and leases investment properties in Singapore, Malaysia, and New Zealand. It also holds financial assets to generate income and potential capital appreciation. The company generates the majority of its revenues from the Hotel operations segment. It operates its business in Singapore, Malaysia, Thailand, and New Zealand. The company derives maximum revenue from Singapore.
80GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

S$2.20
Price
S$2.35
GF Value