CDL Hospitality Trusts posts 3Q21 net property income rose 35 percent on Covid recovery

An artist's concept of CDL Hospitality Trusts' planned build-to-rent property, to be called The Castings, in Manchester, U.K. Credit: CDL Hospitality TrustsAn artist's concept of CDL Hospitality Trusts' planned build-to-rent property, to be called The Castings, in Manchester, U.K. Credit: CDL Hospitality Trusts

CDL Hospitality Trusts reported Friday its third quarter net property income (NPI) increased 34.8 percent on-year to S$20.5 million on an ongoing recovery from the impact of the Covid-19 pandemic.

“Broader distribution of vaccines and easing of travel restrictions resulted in more accommodation demand,” the trust said in a filing to SGX. “Improved NPI contribution arose mainly from the New Zealand, U.K., Germany and Italy Hotels and Angsana Velavaru in the Maldives, which increased collectively by S$8.5 million year-on-year for third quarter 2021.”

However, NPI in Singapore and Australia — areas still facing Covid restrictions — declined by S$3.4 million for the third quarter, CDLHT said.

Revenue for the July-to-September period rose 32.8 percent on-year to S$40.0 million, CDLHT reported.

CDLHT pointed to a gradual recovery.

“The broader distribution of vaccines and easing of travel and other restrictions resulted in more accommodation demand. While the pace of recovery varies between regions, there is a discernible pattern of leisure demand leading the recovery with corporate demand being cautious,” the trust said in the statement.

“Although border restrictions are being eased gradually, 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,” CDLHT said.

For the nine-month period, CDLHT reported net property income increased 27.9 percent on-year to S$57.5 million, while revenue rose 29.3 percent on-year to S$106.22 million.

Outlook

CDLHT issued only mild optimism on the outlook.

“International tourism enjoyed signs of rebound in June and July 2021 as some destinations eased travel restrictions. Nevertheless, 2021 continues to be a challenging year for global tourism, with international arrivals down 80 percent in January-July 2021 compared to the same period in 2019,” the trust said, citing data from UNWTO.

“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 statement said.

Read CDLHT’s filing to SGX for details of performance in its markets.