CDL Hospitality Trusts (CDLHT) has reported gross revenue of $38.1 million, down 38.7% y-o-y, and net property income (NPI) of 38.7% y-o-y to $15.2 million.
The lower figures were primarily due to the impact of the Covid-19 pandemic, which has caused the absence of demand for tourism, and the enforcement of most international travel restrictions, which continue to impact CDLHT’s overall performance negatively.
With the exception of its five Singapore hotels and hotel in New Zealand, most of CDLHT’s properties were operating at low occupancies or had just reopened in 3QFY2020.
The lower gross revenue was also slightly mitigated by inorganic NPI contribution from W Hotel, which was acquired on July 16 during the quarter.
All of CDLHT’s hotels, except Raffles Maldives Meradhoo, which were closed from March 2020, have reopened in July and August, which has led to a 58.2% and 49.4% q-o-q increase for gross revenue and NPI compared to 2QFY2020.
In Singapore, occupancy rate for the quarter came in at 92.4% owing to continued demand for isolation facilities and from foreign workers affected by border closures. Revenue per available room (RevPAR) fell 60.9% y-o-y to $64.
Overall income contribution from CDLHT’s Singapore hotels declined due to the postponement or cancellation of major MICE events, weddings and social functions.
Including W Hotel, the average occupancy rate stood at 87.6%, with a RevPAR of $75, down 58.2% y-o-y. The divestment of Novotel Clarke Quay and acquisition of W Hotel were completed in mid July 2020.
Despite the absence of rental income from Novotel Clarke Quay, NPI for the Singapore portfolio grew 23.2% q-o-q.
With the exception of New Zealand, RevPAR for CDLHT’s hotels in the Maldives, Germany, Italy, Japan, and the UK plunged from 61% to 95% y-o-y. RevPAR for Maldives performed the worst at a 95% drop y-o-y to US$4 ($5.46), which only accounts for Angsana Velavaru.
Meanwhile, RevPAR in New Zealand climbed 0.4% y-o-y to NZ$151 ($136.75).
In its outlook statement, CDLHT says majority of the destinations worldwide, where CDLHT owns properties in, have eased restrictions progressively. However, a second wave of infections have prompted the re-tightening of movement restrictions in parts of Europe.
It adds that “a consistent recovery of international demand is likely to be dependent on a viable medical solution accessible to the masses, which could be available sometime in 2021”.
“Business levels at most of CDLHT’s city hotels are expected to be supported by domestic travel, government-related businesses, demand from guests affected by border closures or requiring isolation and essential international business travel,” it says.
As at 12.34pm, units in CDLHT are trading flat at 99 cents.
See also: CDL Hospitality Trusts divests Novotel Brisbane for $66.4 million
