CDL Hospitality Trusts (CDLHT), the stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust (HBT), posted a revenue of $26.15 million for the quarter ending Dec 31 (4Q 2009).

Although this represented a 7.1% year-on-year drop, this was smaller compared to a 21.4% year-on-year drop in revenue from 3Q 2008 to 3Q 2009.

CDLHT says this was led by improving occupancy rates and revenues in its Singapore hotels, which include Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel and Novotel Clarke Quay.

Net property income saw a significant recovery, registering an increase of 14% to $24.7 million in 4Q 2009 from $21.7 million in 4Q 2008. Total income available for distribution rose 14% to $21.66 million in 4Q 2009 from $18.99 million in 4Q 2008.

For the full year ending Dec 31 2009 (FY2009), CDLHT posted a gross revenue of $91.8 million, a 20% decline from the previous financial year (FY2008) mainly due to weak market conditions in the first half of 2009 caused by the global economic downturn and the H1N1 outbreak.

Revenue declined 20% year-on-year to $91.76 million in FY2009 from FY2008, while net property income registered a smaller decline of 16.4% to $85.92 million partly due to lower property taxes.

After deducting $4.1 million of income retained for working capital, income to be distributed per stapled security for FY2009 was 8.57 cents. Based on a market price of $1.69 as at close of market on Jan 25, 2010, holders of CDLHT’s stapled securities would enjoy an annualised distribution yield of 5.07% for FY2009.

CDLHT says its portfolio of properties had begun to see a rebound in demand during 3Q 2009 led by improving visitor arrivals, with the month of September 2009 being the first month of growth in visitor arrivals of the year, rising 7.1% compared to the same period in 2008. This rising trend continued into the last quarter of the year, with the month of November recording an even higher increase of 8.4% in visitor arrivals compared to the previous year.

Vincent Yeo, CEO of M&C REIT Management, the manager of H-REIT, says, “The fundamentals of the Singapore hospitality industry will change dramatically with the launch of the Integrated Resorts in 2010. With Singapore as a major global travel hub, there is also potential for Singapore to convert more transit passengers into actual visitors. In 2009, Changi Airport achieved passenger traffic of over 37.2 million, whilst only less than 8 million of these passengers actually visited Singapore. The country’s new attractions should help in encouraging more transit passengers to spend time discovering and enjoying Singapore, thereby further boosting demand for rooms.”