CDL Hospitality Trust's NPI dipped 3.8% to $146.05m in 2018
It blamed the absence of contribution from two divested Australian hotels.
CDL Hospitality Trust (CDLHT) recorded relatively dismal results with its net property income (NPI) slipping 3.8% YoY to $146.05m in 2018 from $151.76m in 2017, an announcement revealed. Revenue also dipped 1.2% YoY from $204.32m to $201.8m.
In Q4, NPI and revenue both dropped 5.4% YoY to $38.41m and $52.28m, respectively.
The decline in NPI was attributed to the absence of contribution from three properties, two of which were Australian hotels in Brisbane that were divested in January 2018. The closure of the Dhevanafushi Maldives Luxury Resort for major renovations and branding also weighed on the firm’s earnings for both Q4 and 2018.
“The decline in NPI was largely mitigated by inorganic contribution from acquisitions made in Europe such as the Lowry Hotel, Pullman Hotel Munich and Hotel Cerretani Florence, as well as higher contribution from the Singapore and Japan properties, and Hilton Cambridge City Centre due to better performance,” the firm highlighted.
In Singapore, CDLHT’s revenue per available room (RevPAR) for its hotels excluding Orchard Hotel in Q4 edged up 4.3% YoY on the back of stable corporate demand, additional business generated by the ASEAN Summit meetings, as well as support from Chinese and Indian outbound leisure traveller during the holiday season, the firm observed.
“We continue to focus on organic growth where our core portfolio in Singapore is recording improved performance amidst a recovering hotel sector,” CDLHT’s CEO Vincent Yeo said in a statement. “To also optimise the long term potential and augment the competition positioning of our hotels, we are executing strategic asset enhancement initiatives (AEIs) such as the ongoing refurbishment at Orchard Hotel, which will elevate the product offering when the works are completed.”
Upgrades for Orchard Hotel’s meeting facilities and the grand ballroom, as well as a progressive refurbishment of 260 bedrooms in Orchard Wing started in end 2018 and is slated for completion for Q1 and Q2 2019, respectively.