CDL Hospitality Trusts (CDLHT) has reported gross revenue of $63.4 million for the 1QFY2025 ended March 31, 2.8% lower y-o-y, due to lower revenue seen across all of its markets except for the UK and Japan.
The group also attributed the lower figure to disruption in three of its properties due to renovation works and repairs.
The revenue declines were mitigated by contributions from The Castings in Manchester, which began operations in July 2024, as well as the additions of Hotel Indigo Exeter and Benson Yard, which were both acquired in late 2024.
Net property income (NPI) fell by 14.2% y-o-y to $30 million with declines across CDLHT's geographies except for Japan and the UK.
The group's Singapore portfolio saw NPI decline by 19.6% y-o-y to $17.7 million with occupancy, average daily rate (ADR) and revenue per available room (RevPAR) down y-o-y.
Hotel occupancies fell by 7.2% y-o-y to 75% while ADR declined by 7.8% y-o-y to $231. RevPAR fell by 15.8% y-o-y to $173 due to a softer events calendar on a y-o-y basis, namely the lack of major concerts, such as those by Taylor Swift, Coldplay and Bruno Mars, and the lack of the biennial Singapore Airshow this year.
The W Singapore - Sentosa Cove also began room renovations in early February, which displaced 11.9% of hotel inventory.
The committed occupancy for Claymore Connect, a small shopping centre next to Orchard Hotel, was 97.7% as at March 31.
In New Zealand, CDLHT's RevPAR fell by 3.5% y-o-y to NZ$160 ($123.99) due to the significant supply growth in the city over recent years.
See also: Starhill Global REIT reports net property income of $37.9 mil for 3QFY2024/5, up 0.5% y-o-y
NPI fell by 24.3% y-o-y to $1.7 million mainly from the treatment of base rent, which was recognised on a straight-line basis instead of the actual stepped-up rent, as well as the depreciation of the New Zealand dollar (NZD) against the Singapore dollar (SGD). NPI change would have been flat on local currency terms if the actual stepped-up rent was recognised.
In Australia, CDLHT's RevPAR rose by 1.7% y-o-y to A$132 ($110.42) mainly driven by a 2.7% increase in collective ADR.
NPI, however, fell by 52.8% y-o-y to $618,000 due to the impact from the final stages of room renovations and the one-month closure of the bar at Ibis Perth. The Australian portfolio also saw higher operating expenses from utility costs and the absence of payroll tax credit received in the year before. The depreciation of the Australian dollar (AUD) against the Singapore dollar (SGD) was another factor.
In Japan, RevPAR rose by 11.2% y-o-y to JPY11,136 ($102.18), which is CDLHT's highest 1Q RevPAR since its acquisition in 2014. This comes as Japan welcomes more tourists, with international arrivals expected to grow by 9% y-o-y to 40.2 million in 2025.
NPI rose by 1.8% y-o-y to $1.1 million offset by the depreciation in the JPY. In local currency terms, NPI increased by 5.3% y-o-y.
In the Maldives, CDLHT's RevPAR fell by 10.4% y-o-y to US$464 ($606.66) as the Raffles Maldives Meradhoo saw "significant competition" from the increased luxury report supply near Male, the Maldivian capital. This was partly mitigated by the RevPAR growth in Angsana Velavaru thanks to higher occupancy rates.
NPI fell by 25.5% y-o-y to $3.1 million.
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In the UK, RevPAR rose by 1.1% y-o-y to GBP98 ($171.56) even though the Hilton Cambridge City Centre and The Lowry Hotel saw softer transient demand due to Easter. The subdued football calendar in Manchester didn't help either.
NPI, on the other hand, rose by 27% y-oy- to $2.7 million due to more meetings and events at The Lowry Hotel, operational efficiencies and higher NPI contribution from voco Manchester - City Centre, which is on an inflation-adjusted fixed lease income.
The UK's living assets portfolio saw total NPI of $1.6 million with The Castings achieving physical occupancy of 67.9% as at March 31. Benson Yard, a purpose-built student accommodation (PBSA), saw committed occupancy of 95.8% for the academic year (AY) 2024/2025 as at March 31.
In Germany, CDLHT's RevPAR rose by 6% y-o-y to EUR68 ($101.07) thanks to the addition of the airline crew base business. However, NPI fell by 14.9% y-o-y to $1.2 million largely due to adjustments made in 4QFY2024 and recognised in 1QFY2025.
In Italy, RevPAR fell by 23% y-o-y to EUR111 due to a planned three-week closure for major waterpipe works and the shift of Easter holidays to April.
NPI fell by 64.2% y-o-y to $183,000 as no variable rent was recognised during the quarter.
As at March 31, CDLHT's gearing stood at 41.8% with an interest coverage ratio of 2.2 times. Every 1% change in all-in interest costs on total borrowings will impact CDLHT's distribution per stapled security (DPS) by 1.09 cents either way.
As at 11.57am, units in CDLHT are trading 1 cent lower or 1.26% down at 78.5 cents.
