CDL Hospitality Trusts' NPI down 1.5% to $35.67m in Q3

It was hit by lower income in the Maldives and Japan markets.

CDL Hospitality Trusts’ (CDLHT) net property income (NPI) for Q3 2019 dipped 1.5% YoY to $35.67m from $36.23m in the same period last year, according to its financial statement. Distribution per unit (DPU) fell 4.1% to 2.09 cents.

The downward growth accounted to the extensive renovation works at Orchard Hotel in 1H 2019, and the closure of Raffles Maldives Meradhoo property for similar refurbishment efforts.

The decrease in earnings of other overseas markets also contributed to a lower NPI.

The Japan Hotels posted a yoy RevPAR decline of 15.4%. According to the firm, aside from a surge in new supply, tourism demand was affected by the tension between South Korea and Japan, which resulted in the number of visitors from South Korea dramatically decreasing by 36.3% in Q3 2019.

The plunge in CDLHT’s NPI was partially mitigated by a higher NPI for Pullman Hotel Munich and inorganic contribution from Hotel Cerretani Florence, which was acquired by the company in November 2018. Revenue was also boosted by higher contribution from the Singapore Hotels at $1.1m.

RevPAR of the Singapore hotels for Q3 2019 increased by 4.9%, largely a result of average room rate growth of 4.3% with a high occupancy of 91.4%. There were also additional business generated from this year’s Formula One Singapore Grand Prix.