[SINGAPORE] Net property income (NPI) for CDL Hospitality Trusts (CDLHT) fell 14.2 per cent to S$30 million for the first quarter ended March 31, from S$34.9 million in the year-ago period.
Revenue slipped 2.8 per cent to S$63.4 million on the back of lower contributions from all markets aside from the UK and Japan, the trust’s manager said on Wednesday (Apr 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 NPI fell 19.6 per cent to S$17.7 million, from S$22.1 million in Q1 of FY2024. This came alongside lower RevPAR, which fell 15.8 per cent to S$173 from S$205. Occupancy for Singapore hotels was down 7.2 percentage points at 75 per cent for the quarter, from 82.1 per cent previously.
RevPAR was weighed down by a softer events calendar compared with 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.
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Its New Zealand, Maldives and Italy markets logged lower RevPAR and NPI. The New Zealand market, comprising 5 per cent of CDLHT’s portfolio as at Dec 31, 2024, clocked 3.5 per cent lower hotels RevPAR at NZ$160 (S$128.60) from NZ$166 in Q1 2024, amid significant supply growth over recent years. NPI fell 24.3 per cent to S$1.7 million from S$2.2 million.
Hotels in the stapled group’s UK, Australia, Japan and Germany markets recorded RevPAR growth in local currency. NPI was higher for its Japan and UK markets but lower for Germany and Australia.
The UK market, which makes up the largest share of CDLHT’s portfolio after Singapore, recorded 1.1 per cent higher hotels RevPAR at £98 (S$171.60) and 103.8 per cent NPI growth across both its hotel and living assets businesses. The living assets business includes build-to-rent property and purpose-built student accommodation segments.
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.
Outlook: Poised to gain from falling rates
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.
Stapled securities of CDLHT closed on Tuesday 1.3 per cent or S$0.01 higher at S$0.795.
