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Gross revenue climbed 3.5 percent to $46.5 million in Q1 from $44.9 million over the same period in the year before.
Ascendas Hospitality Trust saw its net property income increased by 13.6 percent to $21.3 million in the first quarter ended 30 June 2019, mainly due to full-quarter contribution from the five hotels acquired during the previous financial year.
Gross revenue climbed 3.5 percent to $46.5 million in Q1 from $44.9 million over the same period in the year before.
Distributable income and distribution per stapled security (DPS) dropped 4.8 percent and 5.2 percent year-on-year to $14.6 million and 1.28 Singapore cents, respectively.
“This was mainly due to the absence of partial distribution of proceeds from the divestment of Novotel Beijing Sanyuan and ibis Beijing Sanyuan (proceeds from divestment) of $1.8 million made in the corresponding quarter last year,” said the trust.
Excluding proceeds from the divestment, DPS for Q1 FY2018/19 would be 1.20 Singapore cents, while DPS for Q1 FY2019 would have climbed 6.7 percent year-on-year.
“We are pleased that the five hotels acquired in the previous financial year have contributed positively to the portfolio,” said Tan Juay Hiang, CEO of the managers.
“The NPI contribution from these hotels have made up for both the loss of income from the sale of the two hotels in Beijing as well as lower contribution from Australia portfolio, which was impacted by a weaker AUD against SGD. On a full-year basis, the NPI contribution from the five hotels are expected to exceed the FY2017/18 full-year NPI contribution from the Beijing hotels.”
The trust’s Australia portfolio posted a 1.1 percentage points decline in average occupancy rate to 80.7 percent in Q1, while revenue per available room dropped 2.2 percent to A$133 (S$124.6).
“Although market conditions remained challenging in Australia, we are heartened to see improved performances by Pullman Sydney Hyde Park and Pullman and Mercure Brisbane King George Square,” said Tan.
“We remain positive on the longer-term prospects of the Australia market in general. We also continue to invest in the properties to keep the accommodation products competitive, as we ride out the challenging period. In this regard, the Mercure rooms in Melbourne has been refreshed while the refurbishment of rooms in Novotel Sydney Parramatta is expected to complete in the last quarter of 2019.”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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