CDL Hospitality Trusts Q1 net property income slides 14.2% to $30 million on lower revenue
Sign up now: Get ST's newsletters delivered to your inbox
The trust noted that recession risks were rising due to an unstable operating environment amid macroeconomic and geopolitical uncertainty.
PHOTO: CDL HOSPITALITY TRUSTS
Follow topic:
SINGAPORE - Net property income (NPI) for CDL Hospitality Trusts (CDLHT) fell 14.2 per cent to $30 million for the first quarter of its fiscal year ended March, from $34.9 million in the year-ago period.
Revenue stood at $63.4 million, down 2.8 per cent from $65.3 million previously. The drop in revenue came on the back of lower contributions from all markets apart from the UK and Japan, the manager said on April 30.
Revenue per available (RevPAR) room came in mixed across the stapled group’s portfolio. Its Singapore, New Zealand, Maldives and Italy markets logged declines while its Australia, Japan, UK and Germany markets experienced growth.
The group’s core Singapore market posted declines for NPI of 19.6 per cent, at $17.7 million from $22.1 million in Q1 of FY2024. This came alongside lower RevPAR, which fell 15.8 per cent to $173 from $205.
Occupancy for its Singapore hotels was down to 75 per cent for the quarter, from 82.1 per cent previously.
RevPAR was weighed down by a softer events calendar compared with the previous year’s first quarter – which clocked 16.6 per cent higher RevPAR year on year, having benefited from major events such as Coldplay and Taylor Swift concerts, and the biennial Singapore Airshow. It was also hit by room renovations at W Singapore – Sentosa Cove, which began in February and displaced 11.9 per cent of hotel inventory.
Declines for the Singapore portfolio came despite visitor arrivals for the year to date up till March staying relatively steady from the year-ago period at 4.3 million.
As at March 2025, CDLHT’s gearing stood at 41.8 per cent as its interest coverage ratio was 2.2 times and its weighted average cost of debt was 3.9 per cent.
Speaking on the near to medium term outlook, the manager said that CDLHT is poised to benefit from further interest rate declines and will continue implementing hedging strategies as rates descend, with a transition to more fixed-rate borrowings.
It noted that recession risks were rising due to an unstable operating environment amid macroeconomic and geopolitical uncertainty.
Units of CDLHT were trading down 0.6 per cent at 79 cents as at 9.30am on April 30. THE BUSINESS TIMES
