CDL Hospitality Trusts (CDLHT) has reported gross revenue of $67.5 million for the 3QFY2024 ended Sept 30, 3.7% lower y-o-y. The quarter’s net property income (NPI) also fell by 6.8% y-o-y to $36.3 million. The declines in gross revenue and NPI were due to the normalisation of travel demand post-pandemic across most markets.
Revenue per available rooms (RevPAR) were mixed with Singapore’s RevPAR down by 10.3% y-o-y to $214. CDLHT’s New Zealand RevPAR fell by 17.2% y-o-y to NZ$106 ($83.86) while its Australian RevPAR rose by 17.6% y-o-y to A$119 ($103.60). In New Zealand, Grand Millennium Auckland recorded a total of 10,962 and 19,798 out-of-order room nights due to renovations for 3QFY2024 and 9MFY2024 respectively. Excluding the out-of-order inventory, the country’s RevPAR for 3QFY2024 would have been NZ$144.
CDLHT’s RevPAR for its Japanese hotels rose by 16.6% y-o-y to JPY9,762 ($84.45) while its Maldives hotels registered RevPAR of US$249 ($329.50), 12.3% higher y-o-y. In the UK, RevPAR fell by 0.3% y-o-y to GBP155 ($266.03) while Germany’s RevPAR rose by 12.4% y-o-y to EUR137 ($196.03). In Italy, RevPAR fell by 7.4% y-o-y to EUR253.
In the 9MFY2024, CDLHT’s gross revenue increased by 2.9% y-o-y to $194.8 million as RevPAR grew across all markets except for New Zealand. NPI also rose by 1% y-o-y to $102.9 million in tandem with the higher revenue.
As at Sept 30, CDLHT’s gearing stood at 38.8%, up from 36.7% as at Dec 31, 2023. Its interest coverage ratio as at Sept 30, stood at 2.55 times, lower than 2.65 times as at Dec 31, 2023. The REIT has $678.7 million in cash and available credit facilities as at Sept 30.
In its release, CDLHT notes that the outlook will vary across its overseas portfolios. The Auckland market, for instance, will remain “challenging” mainly from increased competition with room supply outstripping demand. Inbound demand for Japan is expected to remain “buoyant” despite the rebound of the yen, while tourism arrivals in the Maldives will “continue to come ahead” of 2023 and 2019 supported by the return of Chinese travellers. However, the REIT sees that trading environment will continue to be competitive given the new supply.
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“Latest rate cut decisions undertaken by major central banks are largely indicative that we are at the turn of the interest rate cycle. CDLHT is well-placed to benefit from falling borrowing costs. China, a key arrival source market for many of our markets, has announced stimulus plans to spur its slowing economy, which could bode well for discretionary consumer spending such as travel. The headwinds remain such as recessionary risks and escalation of geopolitical tensions,” says the REIT in its Oct 29 statement.
As at 9.02am, units in CDLHT are trading 0.5 cents higher or 0.54% up at 93.5 cents.
