Frasers Hospitality Trust Q1 RevPAR improves across markets amid resilient tourism demand

FRASERS Hospitality Trust : ACV 0% (FHT) saw an increase in revenue per available room (RevPAR) across its portfolios in the first quarter ended Dec 31, 2023, as tourism demand continued to show “remarkable resilience”.

FHT is a stapled group comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust.

The stapled group observed “sustained recovery” in its markets of Singapore, Australia, United Kingdom, Japan and Malaysia, the managers said in a business update on Thursday (Feb 1).

For its Singapore portfolio, FHT recorded year-on-year declines in all operating metrics due to the “competitive pressure and easing of pent-up travel demand”. RevPAR fell 16.6 per cent on year, while average daily rate (ADR) improved slightly, by 1.2 per cent on year, in the first quarter.

Meanwhile, its Australia portfolio continued to see sustained year-on-year improvements, with RevPAR growing 5.7 per cent. This was supported by growth in occupancy, which was buoyed by the recovery of corporate, Mice (meetings, incentives, conferences and exhibitions) and group segments.

As for its UK portfolio, RevPAR remained “relatively flat” year on year, despite the increase in competition citywide and the easing of pent-up travel, said the managers.

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ANA Crowne Plaza Kobe in Japan saw RevPAR climb 12.9 per cent year on year, supported by growth in ADR and occupancy, which gathered pace in tandem with Kobe’s market recovery.

Meanwhile, the Westin Kuala Lumpur in Malaysia recorded “strong year-on-year rebound in all operating metrics”. RevPAR rose 22.1 per cent, supported by ADR and occupancy growth on the back of strong corporate and leisure demand.

The managers said Maritim Hotel Dresden in Germany saw performance further improve year on year, supported by the recovery in domestic travel and the return of Mice business.

Looking ahead, the managers said continued restoration of international flight capacity could see further recovery in China’s outbound tourism, which needs time to return to pre-pandemic levels.

They cited data from the United Nations World Tourism Organization, which stated that international tourism will fully recover to pre-Covid levels in 2024. Initial estimates point to 2 per cent growth above 2019 levels, said the managers.

Stapled securities of FHT closed at S$0.46 on Friday, down S$0.01 or 2.1 per cent.