Frasers Hospitality Trust (FHT) has reported distribution per stapled security (DPS) of 0.7039 cents for the 1HFY2022 ended March. The half-year period’s DPS was 3.9 times higher than the DPS of 0.1790 cents in the corresponding period a year ago as many countries remained under tight restrictions at the time.
“The recovery pace continues to vary across geographies and FHT has observed a gradual uptick in demand and performance in some markets,” reads the statement put out by FHT on April 29.
The trust’s gross revenue for the 1HFY2022 increased by 10.4% y-o-y to $44.1 million while net property income (NPI) increased by 18.4% y-o-y to $31.7 million. The improvements were due to a better operating environment and partly offset by the impact of the Omicron variant which affected FHT’s performance in the 2QFY2022.
In tandem with the higher revenue, income available for distribution surged by 75.0% y-o-y to $15.1 million.
Distribution to stapled securityholders surged four times to $13.6 million from $3.4 million.
Given the continued global uncertainties, FHT has retained $1.5 million or about 10% of its distributable income for working capital purposes.
In the 1HFY2022, FHT’s Singapore portfolio recorded y-o-y growths in its average daily rate (ADR) and occupancy rate, which lifted revenue per available room (RevPAR) by 15.3% y-o-y. This was mainly supported by the government quarantine business at InterContinental Singapore and Fraser Suites’ long-stay business. In the same period, FHT’s Singapore portfolio saw increases of 9.0% and 23.1% y-o-y for gross operating revenue (GOR) and gross operating profit (GOP) respectively.
FHT’s Australian portfolio occupancy fell by 12.1 percentage points to 28.1%. The portfolio’s RevPAR fell by 6.5% y-o-y despite an increase in ADR. This was due to the emergence of the Omicron variant in December 2021 and the end of the government quarantine business in Novotel Melbourne on Collins and Sofitel Sydney Wentworth.
In the UK, FHT’s portfolio occupancy rose by 43.8 percentage points to 60.6%; RevPAR more than tripled y-o-y, supported by a higher ADR. The portfolio GOR more than tripled y-o-y while GOP stood at GBP3.3 million ($5.71 million) compared to a gross operating loss in the same period last year.
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In Japan, the ANA Crowne Plaza Kobe’s RevPAR increased by 12.9% y-o-y. The hotel’s GOR increased by 28.5% y-o-y. Its GOP more than doubled y-o-y.
The Westin Kuala Lumpur in Malaysia recorded a RevPAR increase of over five times y-o-y due to the lifting of domestic and international restrictions in the country since mid-October 2021. The hotel’s GOR more than quadrupled in the 1HFY2022. Its gross operating loss narrowed to RM0.4 million ($127,000) in the same period.
Germany’s Maritim Hotel Dresden showed a gradual pace of recovery, with the hotel reporting y-o-y increases of over 100% in GOR and GOP.
As at March 31, FHT’s gearing stood at 42.3%.
Unitholders will receive their distributions on June 29.
As at 10.11am, units in FHT are trading flat at 65.5 cents.
