CDL Hospitality Trusts reports 2H21 net property income rose 24 percent

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 net property income for the second half increased 24.1 percent on-year to S$49.13 million amid a recovery in lodging demand.

Revenue for the six months ended 31 December increased 39.7 percent on-year to S$91.50 million, the hospitality trust said in a filing to SGX. 

The increases came despite the divestment of the Novotel Singapore Clarke Quay in July and the Novatel Brisbane in October, the trust said.

“While the ongoing pandemic continues to affect the hospitality industry, recovery of lodging demand was observed in 2H 2021 following the relaxation of travel restrictions and broader distribution of vaccines. The pace of recovery varied across the regions,” CDL Hospitality Trusts said in the statement. 

“The group saw positive momentum in room demand and rate growth in some portfolio markets. For its Singapore and New Zealand Hotels, performance continued to be supported by government demand for isolation facilities for most of the period,” the trust said.

Improvement was mainly attributed to the U.K., Maldives, Germany, New Zealand and Japan, offset by lower net property income from the remaining properties, the filing said.

The distribution per stapled security (DPS) was 3.06 Singapore cents for the second half, down 11 percent from 3.44 Singapore cents in the year-ago period, the filing said.

Singapore hotels

The second half revenue per available room (RevPAR) in Singapore increased 9.3 percent on-year to S$71, and the average daily rate grew 26.8 percent on-year to S$121, but the average occupancy rate fell to 75.3 percent, down 10.8 percentage points on-year, the trust said.

“With the absence of major MICE events, large-scale wedding banquets and social functions, room occupancies for the Singapore hotels largely remained supported by demand for dedicated isolation facilities, staycation and long stay project groups,” the trust said. “

For the full year, CDL Hospitality Trusts reported net property income of S$86.11 million, up 24.2 percent on-year, on revenue of S$157.72 million, up 34.2 percent on-year. Full-year DPS declined to 4.27 Singapore cents, down 13.7 percent from 4.95 Singapore cents in 2020, the filing said.

Read CDL Hospitality Trusts’ filing to SGX for more details about its regional performance.