CDL Hospitality Trusts reported Friday its net property income for the first quarter rose 22.5 percent on-year to S$24.21 million as easing Covid-related travel restrictions spurred increased occupancies and rates.
Revenue for the January-to-March period increased 36.1 percent on-year to S$46.23 million, the hospitality-focused REIT said in a filing to SGX.
For the Singapore hotels, revenue per available room (RevPAR) for the first quarter jumped 40.7 percent on-year on average rate growth, the REIT said. Singapore posted nearly 250,000 visitor arrivals in the first quarter, more than triple the year-earlier quarter, but that marked only 5.2 percent of the level in the first quarter of 2019, before the pandemic, the REIT noted.
The Singapore hotels’ net property income in the first quarter rose 24 percent on-year to S$10.04 million, CDL Hospitality Trusts said.
“Market demand is recovering gradually with staycations and corporate project groups still comprising the bulk of demand. Restrictions on weddings, meetings and social functions have further eased during the quarter. Two of CDLHT’s Singapore Hotels continued to be used for isolation purposes in 1Q 2022 and W Hotel continued to experience strong leisure demand,” the trust said.
In its outlook, CDLHT noted that while Covid-related restrictions are easing, the impact of Russia’s invasion of Ukraine could weigh on the travel recovery, especially as oil prices climb.