Increasing acquisitions and visitor arrivals helped boost CDL Hospitality Trusts’ (CDLHT) results in the first quarter ended 31 March.
CDLHT, a stapled group comprising CDL Hospitality Business Trust and CDL Hospitality Real Estate Investment Trust (H-REIT), recorded a gross revenue growth of 21.4 percent to S$32.3 million in the first quarter.
This was attributed mainly to the improved hospitality performance in Singapore, as well as an additional variable income of S$0.84 million from its Australian hotels.
Net property income in the first quarter jumped 21.8 percent to S$30.1 million, while income available for distribution to holders of stapled securities (after deducting income retained for working capital) rose 17.4 percent to S$22.8 million.
“CDLHT continued to perform well this quarter, achieving a record first quarter average occupancy rate of 85.7 percent for our Singapore hotels in 1Q 2011. Upcoming new tourism demand drivers in 2011 should continue to contribute to accommodation demand in Singapore,” said Mr Vincent Yeo, Chief Executive of H-REIT’s manager.
CDLHT’s Singapore hotels enjoyed good Q1 results, as visitor arrivals continued to increase. The average occupancy rate in the first quarter stood at 85.7 percent, which not only surpassed the previous year’s 84.3 percent but also achieved the highest record for CDLHT in the first quarter of the financial year. The room revenue per available room in Q1 also soared 12.1 percent year on year to S$195.
CDLHT also entered into a conditional sale-and-purchase agreement with Vendor, Republic Iconic Hotel Ltd to acquire and grant a master lease of Studio M Hotel. This will allow CDLHT to increase its exposure to the buoyant Singapore hospitality sector.
“Besides the proposed acquisition of Studio M Hotel, CDLHT is also continuing to sharpen its competitive edge through asset enhancement initiatives at our hotels,” said Mr. Yeo.
“Ongoing renovation works at the Orchard Hotel are expected to continue until Q3 2011, while Novotel Clarke Quay will have two weeks of renovation around the Easter period with the balance of the works commencing at year end. Upon completion of these initiatives, CDLHT is poised to benefit from the improved product offering and remain competitive in the Singapore tourism market.”