SINGAPORE (Oct 31): The managers of CDL Hospitality Trusts (CDL HT) have declared a distribution per stapled security (DPS) of 2.18 cents for 3Q18, down 4.8% from 2.29 cents a year ago in the absence of contributions from divested and temporarily closed properties.

CDL HT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust (HBT).

Revenue for the quarter fell 8.8% to $50 million as compared to $54.8 million a year ago, as Dhevanafushi Maldives Luxury Resort suspended its operations since June this year for rebranding works.

Net property income (NPI) declined 10.2% to $36.2 million from $40.4 million previously due to the absence of contribution of CDL HT’s recently divested properties Mercure Brisbane and Ibis Brisbane, on top of the lack of contributions from Dhevanafushi Maldives Luxury Resort.

There was also lower NPI contribution from Singapore, UK and New Zealand, the last of which was also affected by a weaker New Zealand dollar. These were however partially offset by increased NPI contribution from Pullman Hotel Munich and the Japan Hotels, which performed well, as well as Claymore Connect in Singapore.

Singapore’s performance was notably affected by its Orchard Hotel’s asset enhancement exercise where ongoing refurbishment works affected income contribution.

Excluding Orchard Hotel, RevPAR of CDL HT’s Singapore hotels nonetheless grew 1.3% y-o-y due to support from a stronger Chinese outbound leisure travel season and the presence of major city-wide events like Singapore International Water Week (Biennial), 51st Asean Ministerial Meeting and the F1 Singapore Grand Prix.

Going forward, the manager expects strong supply growth to be supportive of a recovery in the Singapore hotel sector, while tourism demand and international arrivals in the trust’s overseas markets continue to remain healthy.

“We are experiencing a transitionary period as we are conducting significant refurbishment works for two of our properties and seeking opportunities to recycle capital from our earlier divestment,” says Vincent Yeo, CEO of the managers.

“Looking ahead, our core portfolio in Singapore is poised to benefit from the recovery in the hotel sector. We will continue to focus on executing asset enhancement opportunities to maximize the long term potential of our hotels,” he adds.

Units in CDL HT closed 2 cents lower at $1.46 on Tuesday.