The rating reflects the listed company’s experience as a property developer, its relationships with successful hotel brands, and the good locations of its hotel properties, TRIS said on Monday.

The rating is, however, constrained by Grande Asset’s reliance on the income from a few properties, its high administrative expenses, and an aggressive investment plan.

The rating also takes into consideration the nature of the hotel industry, which is characterised by intense competition and a high sensitivity to uncontrollable external factors, and the cyclicality of the property market, the ratings firm said.

Property Perfect and its affiliates are currently Grande Asset’s major shareholders and direct its business decision.

As a result, the ratings of the two developers are closely linked, with Property Perfect rated “BB+” with a “stable” outlook by TRIS.