FRASERS Hospitality Trust's (FHT) Q1 business update on Thursday (Jan 27) indicated a general uplift in revenue per available room (RevPAR), in local currency terms, across the portfolio following a gradual recovery in international travel.

Across the trust's Australian properties, RevPAR increased 43.1 per cent to S$113 for the 3 months ended Dec 31, 2021. In Singapore, RevPAR rose 12.9 per cent to S$143, and in the UK, RevPAR more than doubled year on year.

A majority of FHT's 15 properties are in these 3 markets. 1 of the trust's properties in Singapore re-secured the government quarantine business in Q1, further boosting occupancy.

2 properties in Australia likewise benefitted from the quarantine business. All properties ramped up their performance towards mid-Q1 but the recovery pace was derailed by the Omicron surge in end-December.

In the UK, all of FHT's properties have resumed full operations since mid-May last year. RevPAR improved till the Omicron wave struck, said the manager. However, the UK has eased entry restrictions enacted due to the Omicron wave, and fully vaccinated travellers will no longer need to take any Covid-19 tests from Feb 11, 2022.

ANA Crowne Plaza Kobe in Japan saw RevPAR inch up 2.5 per cent to 5,868 yen. Meanwhile, RevPAR at The Westin Kuala Lumpur more than doubled from a year ago as operating performance improved significantly after travel restrictions were lifted in mid-October.

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The manager said Maritim Hotel Dresden in Germany showed signs of improvement year-on-year, supported by a recovery in domestic travel.

FHT's gearing stood at 42.5 per cent as at Dec 31, 2021 while the weighted average debt to maturity was 2.3 years.

The manager said FHT's portfolio is well-poised to ride on the recovery wave due to several factors including its strong downside protection with long-term master leases. The trust also has a "resilient and diversified portfolio across key gateway cities," it added.

However, downside risks such as new Covid-19 variants and policy changes remain.

The counter ended at S$0.44 on Thursday, down S$0.005 or 1.12 per cent.