Frasers Hospitality Trust’s Q3 RevPAR improves across markets amid ‘sustained recovery’

FRASERS Hospitality Trust : ACV 0%(FHT), in a business update on Friday (Aug 4), said it had observed a “sustained recovery” in its markets for its third fiscal quarter ended June.

It said that its revenue per available room (RevPAR) for its Singapore portfolio rose to S$283 in Q3 from S$225 in the year-ago period. Its nine-month RevPAR figures have come in at S$281, up from S$159 in FY2022’s period and S$244 in 2019’s nine-month period. 

Average daily rate (ADR) for the nine months ended Jun 30 rose 60.7 per cent, and occupancy was up 6.9 percentage points as Singapore’s tourism sector continued its recovery. FHT added that the return of “marquee events” in Singapore had also contributed to the improved figures. 

Over in Australia, FHT’s Q3 RevPAR rose to A$180 (S$158.63) from A$174 in the year-ago period. For the nine-month period, RevPAR was up to A$208 from A$78, on the back of robust growth in occupancy and ADR figures attributable to a recovery from corporate and transient segments, the trust said.

FHT added that its portfolio in Australia maintained an upward trajectory with the continued recovery of the tourism sector, boosted by a strong lineup of events in Sydney and Melbourne.

In the UK, Q3 RevPAR rose to £150 (S$256.30) from £135. The trust said demand for business travel in the country continues to recover gradually amid challenging market and economic conditions, but warned that inflation remains elevated. This has impeded further recovery of the portfolio’s performance. 

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RevPAR for FHT’s Japan portfolio rose to 8,219 yen (S$77.50) from 6,639 yen. However, the gradual pace of resumption of meetings, incentives, conferences and exhibitions (Mice) events in ANA Crowne Plaza Kobe has made the recovery of its Mice business a slow one. Inflationary pressures have also worsened and impeded the pace of recovery, FHT said.

In Malaysia, Q3 RevPAR was up to RM417 (S$122.46) from RM269. FHT said the Malaysian authorities are seeking to speed up visa approvals and improve flight connectivity to boost arrivals. 

The trust also said the performance of its Maritim Hotel Dresden in Germany has shown “further improvement” for the nine months in FY2023, supported by the recovery in domestic travel following lifted restrictions.

Looking ahead, FHT said it remains “cautiously optimistic” for the remainder of the year. It highlighted risks like the potential recession and geopolitical tensions, but identified opportunities in factors like China’s reopening and travel demand. 

FHT also reiterated its “proactive portfolio reconstitution and asset management strategy” – unlocking value through opportunistic divestments, creating growth with yield-accretive acquisitions and enhancing returns through proactive asset enhancement. 

Stapled securities of FHT closed flat at S$0.48 on Friday before the business update.