SINGAPORE (Oct 27): The trustee-managers of CDL Hospitality Trusts (CDLHT) has announced a Distribution per Stapled Security (DPSS) for 3Q17 of 2.29 cents, down 3% compared to 2.36 cents in 3Q16.
Excluding the effect of the rights issue which was completed in August, DPS for 3Q17 would have been 2.74 cents, an increase of 12.3%.
Revenue increased 20.7% to $54.8 million while net property income increased 15.9% to $40.4 million.
CDLHT’s managers say inorganic contribution from The Lowry Hotel in Manchester, UK and Pullman Hotel Munich in Germany, coupled with robust operating performance from its New Zealand hotel, boosted the portfolio’s performance. In addition, there was also modest incremental contribution from Singapore hotels and Claymore Connect.
However, the growth in NPI was partially offset by softer trading performance from hotels in Japan and resorts in Maldives, as well as lower contribution from Hilton Cambridge City Centre which was further affected by a weakened Sterling pound.
Total distribution to stapled securityholders grew by 13.3% to $27.4 million for 3Q17.
CDLHT’s managers say trading environment of Singapore hotels continued to face price competition from the increased supply of hotel rooms.
3Q17 RevPAR for Japan hotels declined 2.5% y-o-y despite the strong occupancy levels.
In the Maldives, the increase in new rooms supply, coupled with the decline in visitor arrivals from China, continue to affect RevPAR which declined 24.6% in 3Q17.
Meanwhile, the RevPAR of UK hotels remained stable y-o-y despite the recent terror incidents in the country and closure of the Manchester Arena until mid-Sept.
Vincent Yeo, Chief Executive Officer of CDLHT’s managers, says: “Following the recently completed equity fund raising exercise which has strengthened our balance sheet, we will actively pursue suitable acquisitions and asset enhancement initiatives to generate growth in returns for Stapled Securityholders.”
Units in CDLHT closed at $1.65 on Thursday.
