CDL Hospitality Trusts’ net property income up 54.4% in Q3, bolstered by travel

Ry-Anne Lim
Published Fri, Oct 28, 2022 · 09:19 AM

With the return of leisure activities and travel, CDL Hospitality Trusts : J85 0% (CDLHT) posted a 54.4 per cent increase in net property income (NPI) in the third quarter of 2022 ended Sep 30, to S$31.6 million, from $20.5 million a year ago.

Gross revenue saw a 46.4 per cent increase this quarter to S$58.5 million, from S$40 million a year ago. The improvements reflect the robust growth in global travel as border restrictions eased post-pandemic, said CDLHT in a business update on Friday (Oct 28).

The stapled hospitality group also recorded sharp increases in its revenue per available room (RevPAR) across the majority of its portfolio, with its hotels in Singapore recording the highest RevPAR for a single month in September and for the reporting quarter. 

RevPAR in Q3 for its six Singapore hotels stood at S$199. This was more than double at a 163.6 per cent increase from Q3 2021’s S$76. CLDHT attributed this to a return of citywide events in this quarter, such as the Food and Hotel Asia 2022 show and 2022 Singapore Grand Prix. 

“While demand largely comprised individual leisure and corporate travellers in the early part of the quarter, the hotels benefited from a strong return in events in September,” it added. 

The group highlighted that its Singapore and Australia portfolios were main contributors to CDLHT’s Q3 performance –  more than half of its gross revenue, at S$31.8 million, was contributed by its hotels in Singapore, while its properties in Singapore and Australia accounted for most of its increased NPI, rising by S$15.4 million from a year ago. 

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This increase in NPI was, however, offset by lower NPI from its property in New Zealand, which declined by S$4.7 million year on year, following its exit from the government isolation programme. 

Its hotel portfolio in Japan, Italy and the United Kingdom also rose in NPI as travel returned, while its Germany portfolio slipped due to a clawback by its lessee as well as higher maintenance and property expenses. 

CDLHT’s debt maturity stood at around 1.7 years as at Sep 30, 2022. An existing £50 million (S$81.5 million) term loan facility was refinanced during Q3, and documentation is underway to complete the refinancing for its remaining S$193 million debt, which matures at the end of 2022, it said. 

CDLHT’s stapled securities closed flat at S$1.08 on Thursday.

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