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CDL Hospitality Trusts’ (CDLHT) revenue rose 14.3 percent year-on-year to $55.24 million in Q4 2017, while its net property income (NPI) increased 7.8 percent to $40.62 million, revealed an SGX filing on Friday (26 January).
The positive metrics are attributed to inorganic contribution from The Lowry Hotel in Manchester, UK and Pullman Hotel Munich in Germany. Its Singapore properties also posted stable performance.
“However, the growth in NPI was partially offset by softer performance from the Japan Hotels, Maldives Resorts and Hilton Cambridge City Centre. While the underlying performance of Grand Millennium Auckland hotel in New Zealand remained healthy, NPI contribution was slightly lower due to a weaker NZ Dollar and higher local property tax.”
Nevertheless, CDLHT’s distributable income increased by 9.8 percent to about $33.94 million in Q4 2017 on an annual basis. However, distribution per unit (DPU) declined by 5.7 percent from 3 cents in Q4 2016 to 2.83 cents in the quarter under review as the trust issued 199,545,741 new stapled securities to raise gross proceeds of $255.4 million last August.
For the whole of 2017, its revenue rose by 13 percent year-on-year to around $204.32 million, whereas NPI increased 10.3 percent to $151.76 million. Although distributable income climbed 11.3 percent to about $110.35 million, its DPU for the entire year declined by 4.3 percent to 9.22 cents compared to 9.63 cents in 2016.
Meanwhile, the trust revealed that the average occupancy rate of its Singapore hotels improved from 85.4 percent in 2016 to 86.7 percent last year. However, their revenue per available room (RevPAR) dipped by 0.6 percent to $159 on an annual basis, while the average daily rate fell 2.2 percent to $183.
“In Singapore, we have embarked on a refurbishment exercise for Orchard Hotel. The renovation of the hotel’s gourmet Chinese restaurant, Hua Ting, was completed and opened in December 2017,” noted Vincent Yeo, Chief Executive of CDLHT’s managers.
Singapore-listed CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust (HBT). M&C REIT Management Ltd manages the former, while &C Business Trust Management Ltd is the latter’s manager-trustee.
As of 11 January 2018, CDLHT owns a retail mall, as well as two resorts and 15 hotels with a total of 5,002 rooms across Singapore, Australia, New Zealand, Japan, Maldives, the UK and Germany.
This article was edited by Keshia Faculin.
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