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Despite the languishing performance in Asia particularly in Singapore, City Development Limited’s (CDL) hospitality business activities remained healthy globally as its European business surges, a report by UOB Kay Hian revealed.
According to UOB, Singapore posted a 6.6 percent drop in RevPar, while the rest of Asia saw RevPar fall 11.7 percent resulting to lower occupancy rate that has led to a 1.4 percent decline in CDL’s global hotel RevPar.
“Management attributed this to the loss of contribution from the W Singapore (securitised Dec 2014), supply-side pressure, lower visitor numbers and the stronger S$ vs several other Asian countries,” said UOB Kay Hian.
On the other hand, CDL’s business in Europe offered the bright side as it posted a 14.4 percent increase in RevPar due to higher daily rates and occupancy.
Thus helping the group’s overseas activity remain healthy.
“In China, Tower 1 (462 residential units) of CDL’s Suzhou mixed-use project saw sales of about 82 percent (Q2 2015: 61 percent). The group also plans to launch its 126-unit Chongqing project and 85 bungalows in Shanghai later this year,” the report said.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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