CDLHT posts 1% rise in Q1 NPI amid tentative recovery in hospitality industry

CDL Hospitality Trusts (CDLHT) on Thursday posted a 1 per cent rise in net property income (NPI) in Q1 2021 ended March 31, 2021 to S$19.8 million, from S$19.6 million a year ago.

Gross revenue was marginally higher at S$34 million in the first quarter of 2021, increasing by 2.8 per cent year on year (yoy) from the same period last year. The muted increase was attributed to the continued effect of travel restrictions and lockdowns on the hospitality industry, CDLHT said in a business update.

The stapled hospitality group also recorded "sharp declines" in revenue per available room (RevPAR) for hotels that are either closed on a temporary basis or are operating at very low occupancies. It added that substantive contributions to portfolio revenue from the Singapore, New Zealand and Maldives hotels amounting to S$27.6 million - including S$9.3 million fixed rent - partially insulated the group from the "severe impact of the pandemic".

Quarter-on-quarter NPI fell 19.1 per cent from Q4 2020, CDLHT added in its update.

RevPAR in Q1 2021 for its five Singapore hotels stood at S$55. This was down 39.4 per cent year on year from S$91. CDLHT attributed this to border closures and travel arrangement suspensions, even though Singapore established travel arrangements with 11 countries. Market demand for its Singapore hotels remains comprised primarily of government contract business for isolation purposes, staycations and corporate project groups.

As for its hotel portfolio in the Maldives, Perth, New Zealand and Japan, various travel restrictions had curbed tourist arrivals.

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CDLHT's debt maturity stood at 2.1 years as at March 31, 2021. It added that it is "in active discussions" with banks on refinancing of borrowings. About S$294.2 million of borrowings are due in August and December 2021, said CDLHT. It added that there are no material concerns over its ability to fulfil near-term debt obligations.

CDLHT’s stapled securities closed flat at S$1.27 on Thursday.