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CDLHT posts Q1 DPSS of 2.44 Singapore cents, down 11.3%

CDL Hospitality Trusts (CDLHT) reported a distribution per stapled security (DPSS) of 2.44 Singapore cents for Q1 2015, down 11.3 per cent from 2.75 cents a year ago.

Gross revenue edged down 3.5 per cent year on year to S$42.21 million on the back of lower contributions from its hotels in Singapore, while net property income slipped 6.1 per cent to S$34.5 million.

Gross revenue from its Singapore hotels was down 13 per cent year on year to S$23.43 million. The decline was partially offset by contributions from two newly acquired hotels in Tokyo.

Income available for distribution - after deducting income retained for working capital - worked out to S$23.97 million, down 10.9 per cent.

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Vincent Yeo, chief executive of CDLHT's managers, said: "The performance of the Singapore hotels in the first quarter was dampened by the absence of the biennial Singapore Airshow as well as an uncertain economic environment."

For its Singapore hotels (based on combined weighted average statistics), average occupancy slipped half a percentage point to 87.7 per cent while average daily rate dropped 9.6 per cent to S$197 and revenue per available room was down a sharper 9.9 per cent to S$173.

Tourist arrivals to Singapore slipped 5.5 per cent in the first two months of this year due to factors such as the strong Singapore dollar vis-a-vis regional currencies and an uncertain global economic outlook. Corporates have also been cautious with their travel expenditure.

The Singapore Tourism Board has announced a global marketing campaign as well as a partnership with Changi Airport Group to try to drive more traffic to Singapore.