CDL Hospitality Trusts reported yesterday a 3.4 per cent rise to 2.44 Singapore cents in distribution per stapled security (DPS) for the three months to Sept 30.
Gross revenue rose 10.5 per cent to $45.4 million.
The profit increase came on the back of a 5.3 per cent rise in net property income (NPI) to $34.8 million on contributions from its hotels in Britain and New Zealand.
Contributions from Australia and Japan hotels also grew due to positive earnings translation. However, the growth in NPI was partially offset by lower contributions from Singapore and the Maldives as a result of the soft trading environment.
For the Singapore operations, revenue per available room fell in the third quarter to $168, mainly due to the competitive trading environment caused by new room supply and softening corporate activities.
Two of the Singapore hotels have been undergoing asset enhancement works. At Grand Copthorne Waterfront, the remaining renovation announced previously will be completed by the end of the year. These relate mainly to the refurbishment of existing meeting rooms. At M Hotel, the ongoing room refurbishment is expected to be done by the end of the year.
AT A GLANCE
GROSS REVENUE: $45.4 million (+10.5%)
NET PROPERTY INCOME: $34.8 million (+5.3%)
DISTRIBUTION PER SECURITY: 2.44 cents (+3.4%)
Mr Vincent Yeo, chief executive officer of the trust's manager, said: "The trading environment for Singapore hotels is likely to remain competitive till next year, given the subdued economic environment leading to softer corporate demand. Nevertheless, we are encouraged by the continued growth in visitor arrivals which has supported the healthy occupancy levels in the market.
"Overall, our geographically diversified portfolio has provided the benefits of income diversification despite the soft trading conditions in our core Singapore market. Our performance in the third quarter was lifted by inorganic contribution from Hilton Cambridge City Centre as well as improved performance from Grand Millennium Auckland."