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CDL Hospitality Trusts’ 3Q21 NPI grow 34.8% y–o-y to $20.5 mil

Atiqah Mokhtar
Atiqah Mokhtar10/29/2021 09:17 AM GMT+08  • 3 min read
CDL Hospitality Trusts’ 3Q21 NPI grow 34.8% y–o-y to $20.5 mil
The stronger performance was underpinned by contributions from overseas markets including New Zealand, UK and Germany.
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CDL Hospitality Trusts (CDLHT) has reported net property income (NPI) of $20.5 million for the 3QFY2021 ended September, up 34.8% y-o-y from $15.2 million previously, reflecting ongoing recovery from the pandemic.

Revenue for the period grew 32.8% y-o-y to $40 million.

According to its 3QFY2021 operational update released on Oct 29, the improved NPI contribution arose mainly from the New Zealand, UK, Germany and Italy hotels as well as Angsana Velavaru in the Maldives, which increased collectively by $8.5 million y-o-y during the period.

See: CDLHT pivots to BTR, acquires property in Manchester

This was largely underpinned by continued managed isolation business for the New Zealand Hotel, strong domestic leisure travel demand in the UK, and a significant uplift in arrivals to the Maldives after the lifting of suspensions of visas for travellers from South Asian countries.

The stronger performance from these markets offset the lower NPI from the Singapore and Australia markets, which fell $3.4 million for the 3QFY2021, partially driven by the divestments of Novotel Singapore Clarke Quay and Novotel Brisbane last year.

CDLHT’s manager also highlights inbound visitor arrivals to Singapore remain significantly lower as compared to pre-pandemic levels. Room occupancies for five of the Singapore Hotels continued to be primarily supported by demand for dedicated isolation facilities. Nonetheless, staycation demand continues to be buoyant for W Hotel.

Including W Hotel, CDLHT’s Singapore hotels achieved an average occupancy rate of 72.3% for the 3QFY2021, declining 15.3 percentage points y-o-y. The hotels had an average daily rate of $104, up 21.6% y-o-y, while RevPAR came in at $76, staying relatively flat from the $75 recorded for the previous year.

Revenue per available room (RevPAR) for CDLHT’s overseas hotels all increased in the 3QFY2021, with the exception of Australia, which saw a 20.5% fall y-o-y.

On a year-to-date basis, CDLHT has reported NPI of $57.5 million, up 27.9% y-o-y, on the back of revenue totalling $106.2 million, up 29.3% y-o-y.

In terms of outlook, the manager notes that while vaccination rates continue to increase and signs of rebound are being seen as restrictions ease, the year continues to be challenging one for global tourism, with with international arrivals down 80% in January-July 2021 compared to the same period in 2019.

“CDLHT has observed and is anticipating more sustained recovery in some overseas markets, some more impressively, such as the Maldives and UK markets and others, more gradually such as the Germany and Italy markets. Looking ahead, as state or country border restrictions are further relaxed and more mutual travel arrangements are enacted, CDLHT’s portfolio markets should forge ahead progressively on the path of sustained recovery and move towards normalisation,” the manager says.

For more stories about where the money flows, click here for our Capital section

As at Sept 30, CDLHT has a gearing of 40.1% and its all-in weighted average cost of debt remained stable at approximately 1.9%.

Units in CDLHT closed at $1.20 on Oct 29.

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