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CDL Hospitality Trust’s (CDLHT) distributable income fell by 10.9 percent to S$23.97 million in Q1 2015 from S$26.89 million a year ago, according to the company’s SGX filings.
As a result, income available for distribution per stapled security declined to 2.44 cents from 2.75 cents during the same period last year.
In Q1 2015, CDLHT’s gross revenue dipped by 3.5 percent to S$42.2 million versus S$43.76 million in the first quarter of 2014. This is attributed to the lower contributions from its hotels in Singapore, where contributions fell by 13 percent or S$3.5 million on an annual basis.
“The performance of the Singapore hotels in the first quarter was dampened by the absence of the biennial Singapore Airshow this year as well as an uncertain economic environment,” said Vincent Yeo, CEO of the managers of CDLHT, M&C REIT Management and M&C Business Trust Management.
Nevertheless, the slide was offset by the S$2.5 million contribution from two newly acquired freehold hotels in Tokyo, Hotel MyStays Kamata and Hotel MyStays Asakusabashi.
Consequently, the trust’s net property income receded by 10.9 percent to S$25.52 million during the period under review versus S$28.65 million in Q1 2014
Moving forward, the stapled group which consists of CDL Hospitality Business Trust (HBT) and CDL Hospitality Real Estate Investment Trust (H-REIT) will continue to search for potential hotel acquisitions, given its healthy gearing of 32.3 percent as of 31 March 2015.
In terms of supply, the number of hotel rooms in Singapore is expected to grow by 5 percent in 2015, or an additional supply of 2,886 rooms.
Despite a 10.1 percent year-on-year drop in revenue per available room (RevPAR) during the first 28 days of April due to the absence of the Food and Hotel Asia biennial city-wide event last month, the trust forecasts its room rates to remain competitive.
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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