Frasers Hospitality Trust says outlook is 'challenging'; RevPAR still a fraction of year-ago levels

FRASERS Hospitality Trust hotels' performance generally picked up from the start of the financial year to end-June, the manager said in a third-quarter update on Thursday.

Still, average daily rates and revenue per available room (RevPAR) were all lower year on year for the nine months to June 30, in local currency terms. Occupancy rates also remain depressed, as the coronavirus batters the global hotel industry.

The manager called the near-term outlook "challenging and fluid", although a rebound in domestic tourism could benefit the trust's hospitality assets in Australia, Japan and Britain.

Across the trust's Australian portfolio, RevPAR was down 52.3 per cent to A$68. In Singapore, it was down 31.4 per cent to S$120, and in Britain, down 68.9 per cent to £19 (S$35.90). These three markets house the lion's share of the trust's 15 properties.

Meanwhile, RevPAR for Japanese property ANA Crowne Plaza Kobe was lower by 40.8 per cent to 3,798 yen (S$46.80); RevPAR for The Westin Kuala Lumpur in Malaysia shrank to just RM25 (S$8) for the nine months, compared with 204 ringgit before.

Maritim Hotel Dresden in Germany did not report average daily rate, RevPAR or occupancy, on limitations under the master lease agreement. But its performance "continued to be affected by the temporary closure of the adjoining International Congress Centre, which has been extended with no fixed re-opening date", the manager disclosed in its business update.

The portfolio had a weighted average lease expiry of 12.2 years as at end-June, with no master leases due for renewal until 2024.

Gearing stood at 42.1 per cent, after a debt-funded redemption of perpetual securities in May, while the weighted average debt to maturity was 2.9 years.

Frasers Hospitality Trust units closed on Thursday at S$0.52, up by half a Singapore cent or 0.97 per cent, before the announcement.