CDL Hospitality Trusts Q1 NPI rises 10.4% to S$33.1 million

[SINGAPORE] Net property income (NPI) for CDL Hospitality Trusts (CDLHT) was up 10.4 per cent at S$33.1 million for the first quarter ended Mar 31, from S$30 million in the same year-ago period.

Revenue increased by 5.9 per cent on the year to S$67.1 million in Q1, driven by “broad-based growth” across a majority of its portfolio markets, apart from that of Japan and the Maldives.

Based on a Thursday (Apr 30) statement, revenue per available room (RevPAR) across CDLHT’s portfolio came in mixed during the quarter.

For Singapore hotels, RevPAR stood at S$184 in Q1, up 6.6 per cent year on year from S$173. NPI for the Singapore portfolio came in at S$18.8 million for the quarter, a 5.9 per cent year-on-year increase from S$17.7 million.

Occupancy levels for the Singapore portfolio rose 5.4 percentage points to 80.4 per cent in Q1, from 75 per cent a year prior.

CDLHT’s managers said that geopolitical uncertainty arising from the Middle East conflict had begun to weigh on sentiment in March 2026, but while there had been some cancellations and moderation in demand, “the overall impact has not been significant so far”.

The managers said that Claymore Connect at 442 Orchard Road in Singapore recorded a 5 per cent year-on-year growth in NPI, mainly due to annual rent escalations. Its committed occupancy level held steady at 97.7 per cent as at Mar 31.

Grand Millennium Auckland in New Zealand saw a 16.3 per cent rise in RevPAR, driven by strong convention-related demand and rate gains, after the Phase 2 room renovations were completed at the end of 2025.

Its NPI rose 46.1 per cent on the year in Q1, added the statement.

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In contrast, its Japan hotels recorded a 4.2 per cent year-on-year decline in RevPAR, amid ongoing geopolitical tensions between Japan and China which curtailed inbound demand from China.

“Performance was also measured against a high base in the prior year, when the hotels achieved record performance,” CDLHT’s statement noted.

The Maldives resorts reported a 6.4 per cent year-on-year decline in RevPAR for Q1, mainly due to a sharp weakening of demand in March after the escalation of the Iran war.

“(This) resulted in the suspension or reduction of services by several carriers serving the Maldives,” CLDHT’s managers said.

Its NPI declined 26.3 per cent on the year in Q1, as the revenue shortfall was amplified by the relatively fixed nature of resort operating costs.

Looking ahead, the managers noted that the operating backdrop has become “more challenging” amid heightened geopolitical uncertainty.

“The ongoing conflict in the Middle East continues to pose headwinds to global growth and will weigh on our near-term results,” they said.

“While resolution could support recovery in connectivity and travel flows, elevated energy costs and airfares may continue to dampen leisure and corporate travel demand, with broader inflationary pressures filtering through to operating margins.”

Stapled securities of CDLHT closed on Wednesday 1.2 per cent or S$0.01 lower at S$0.80.