SINGAPORE – CDL Hospitality Trusts’ (CDLHT) distribution per stapled security (DPS) rose 17.3 per cent to 3.59 cents for the second half of 2022, from 3.06 cents a year earlier.

Managers of the stapled group on Monday said they observed positive momentum in rate growth across all its portfolio markets due to continued global travel recovery during the half-year period.

The return of corporate groups and citywide events reinforced the recovery initially spurred by leisure demand, they added.

Gross revenue for the half year rose 42.9 per cent to $130.7 million from $91.5 million, while net property income (NPI) increased 48.1 per cent to $72.8 million from $49.1 million.

The rise in NPI was mainly attributed to the Singapore portfolio, which saw an NPI increase of $27.4 million year on year.

CDLHT’s fourth-quarter revenue per available room (RevPAR) for Singapore hotels, which include W Singapore Sentosa Cove and Grand Copthorne Waterfront Hotel, grew 105.2 per cent to $220 from $107. This brought second-half RevPAR to $209, a 129.3 per cent rise from $91 a year ago.

Despite the absence of visitors from China, Singapore’s biggest pre-pandemic inbound market, marquee events such as the Singapore Grand Prix in September 2022 drove the tourism rebound.

On the other hand, the NPI for its New Zealand hotel and Maldives resorts declined by $11.3 million, while RevPAR for New Zealand also decreased 46.7 per cent to NZ$98 (S$84) from NZ$185 a year ago as long-haul flight capacity remained limited to only certain types of travellers.

Nonetheless, the managers expect the coming 2023 Fifa Women’s World Cup, jointly hosted by Australia and New Zealand in the third quarter of 2023, to boost international tourism numbers for the region.

Meanwhile, second-half RevPAR for the Maldives also decreased 5.8 per cent to US$263 (S$345) from US$280 a year ago, impacted by weaker top-line performance in the fourth quarter amid the reopening of competitor resorts, as well as rising inflationary costs.

With China’s border reopening, the managers noted that the return of the largest pre-pandemic visitor source market to the Maldives should mitigate the impact of the new supply of resorts, as well as the reopening of other resort destinations.

CDLHT’s Japan hotels saw NPI increase by $700,000 year on year to $1 million for the second half of 2022 on the lifting of pandemic-related entry restrictions last October.

DPS for financial year 2022 was 5.63 cents, up 31.9 per cent from 4.27 cents a year ago.

Gross revenue for the full year was $229.4 million, up 45.4 per cent from $157.7 million last year. NPI rose 43.7 per cent to $123.7 million from $86.1 million.

As at Dec 31, CDLHT’s total portfolio value increased by 6.2 per cent or $163.7 million year on year to $2.8 billion, mainly due to the Singapore portfolio, as well as the inclusion of Hotel Brooklyn and construction progress of The Castings.

Mr Vincent Yeo, chief executive officer of CDLHT’s managers, said that amid a gloomy economic environment, exacerbated by higher borrowing costs and inflationary cost pressures, it is gratifying to see travel demand continuing its robust recovery trajectory.

“China’s reopening should boost international tourism in 2023 and beyond, helping to mitigate the inflationary cost challenges and higher interest rate environment,” Mr Yeo added.

Stapled securities of CDLHT closed at $1.37, up 1.48 per cent, on Monday. THE BUSINESS TIMES