CDL Hospitality posts 1H21 net property income increased 24 percent

Singapore five-dollar note Photo by Leslie Shaffer

CDL Hospitality Trusts reported Friday its first half net property income increased 24 percent on-year to S$36.98 million on stronger contributions from the Maldives resorts, and New Zealand, Germany, Italy and U.K. hotels.

Occupancies at the Singapore and New Zealand hotels were supported by demand for accommodation facilities to be used for isolation purposes due to the Covid-19 pandemic, the trust said.

CDLHT added the contribution from the year-earlier acquisition of the W Hotel was offset by the absence of revenue from the Novatel Singapore Clarke Quay and the Novatel Brisbane, which were divested last year.

Revenue for the January-to-June period rose 27.2 percent on-year to S$66.53 million, the trust said in a filing to SGX.

The distribution per stapled security came in at 1.22 Singapore cents, down 19.2 percent on-year, after some funds available for distribution were retained, the trust said.

In its outlook, the trust was cautiously optimistic.

“The widespread vaccination efforts have helped to mitigate the effects of the extremely contagious and virulent Delta variant. Although the
pandemic is yet to be over, the easing of restrictions and the restart of international travel have taken place in Europe,” Vincent Yeo, CEO of the trust’s managers, said in the statement.

“The performance of our U.K. and Germany Hotels has been encouraging, and we are experiencing some of the highest occupancies since the onset of Covid-19. We are optimistic that such form of recovery could follow in other markets upon the continued easing of restrictions and quarantine requirements,” Yeo added.

More details on the occupancies of CDLHT’s hotels are available here.