Frasers Property reported Wednesday that its hospitality business continued to face headwinds in the fiscal first quarter amid the ongoing pandemic.
In North Asia, the revenue per available room (RevPAR) came in at S$42.50 for the October-to-December period, down 36.9 percent on-year, Frasers Property said in a filing to SGX.
“Emergence of the Omicron variant resulted in a surge of infection in North Asia, affecting the performance of the properties within the region,” the company said.
In Asia Pacific ex-North Asia, RevPAR grew 9.1 percent on-year to S$108, the company said.
“High vaccination rates in Australia underpin reopening of domestic travel between majority of states, although Western Australia borders remain closed,” the company said, adding that pent-up demand emerged in Singapore as vaccinated travel lanes (VTLs) opened.
In addition, the Capri by Fraser China Square in Singapore continued to provide service for Covid-related quarantine needs, the filing said.
In Australia, the investment portfolio faced headwinds, Frasers Property said.
Stabilization is “in progress” for newly completed retail assets in Australia amid challenges from lockdowns and trading restrictions imposed on retailers during the fiscal first quarter, the filing said. In addition, the New South Wales office portfolio faced pressure due to vacancies, the filing said.
Europe RevPAR surges
RevPAR in Europe jumped 240 percent on-year in the fiscal first quarter to S$184.80, Frasers Property said.
“Robust recovery across most of the region in the second half of 2021 especially the Malmaison and Hotel du Vin portfolio, but the surge in infections of the Omnicron variant in December resulted in substantial slowdown across the U.K.,” the company said.
“With higher vaccination levels, governments [in Europe] are starting to lift certain restrictions such as pre-arrival testing, which should give a boost to the travel and hospitality industries in the mid-term,” the company added.
For its hospitality outlook, Frasers Property said it was “managing productivity, operational efficiency and executing recovery plans amid ongoing pandemic impact to position for eventual recovery.”
The company is planning five property openings in North Asia in 2022, and is preparing to enter the Cambodia market, the filing said.
Clarification: The link to Frasers Property’s fiscal first quarter update has been changed as the company clarified data related to property units sold; that data was not cited in Shenton Wire’s article.