SINGAPORE (July 30): The manager of CDL Hospitality Trusts has declared a distribution per stapled security of 2.07 cents 2Q19 ended June, down 3.3% from 2.14 cents the same period a year ago.
Gross revenue fell 0.5% to $47.5 million for the quarter but net property income was higher by 0.5% to $33.8 million.
Total portfolio income was boosted by a full quarter’s inorganic contribution from its hotels in Italy and higher contribution from its Munich and UK hotels. However, revenue growth was offset by the closure of Raffles Maldives Meradhoo as well as lower contribution from hotels in Singapore, New Zealand and Australia, which posted a collective y-o-y decline of $2.5 million.
RevPAR of Singapore hotels declined 1.7% y-o-y due to the absence the biennial Food&HotelAsia this year and a slower pace of visitor arrivals growth from India, Indonesia and Australia amid the economic uncertainty and elections. The performance of local hotels was also affected by upgrading works in Orchard Hotel and Copthorne King’s Hotel.
In the Maldives, occupancy increased at Angsana Velavaru, leading to RevPAR gains of 13.9% y-o-y. However, gross revenue in local currency terms remained unchanged due to the largely fixed rental income received during the quarter.
Hotels in Australia continued to receive fixed rent for 2Q19 but overall gross revenue contribution to CDLHT in Singdollar terms was lower due to the weaker Aussie dollar.
The group’s hotels in Japan posted a y-o-y RevPAR decrease of 1.9% due to a softer events calendar and lower average room rates due to competition from nearby hotels. NPI also declined mainly due to higher operating costs.
Total distribution to stapled securityholders after deducting income retained for working capital was $25.1 million, down 2.6% from a year ago.
Vincent Yeo, CEO of CDLHT’s manager, says, “CDLHT is undergoing a transition period due to major asset enhancement initiatives which have impacted our overall results for this quarter. The macro economic environment, which has weakened due to ongoing trade conflicts, may continue to weigh on demand in the near term... The benign hotel supply growth in the next few years will provide a constructive environment for a recovery in the Singapore hotel sector.”
As at 12noon, units in CDLHT are rtrading at 1 cent higher at $1.65.
