CDL Hospitality Trusts’ earnings slip 2.3% to $33.7m in Q1

On back of weak trading in Singapore, Maldives.

CDL Hospitality Trusts (CDLHT)’s net property income for Q1 came in at $33.7m, reflecting a 2.3% YoY pullback. This is due largely to soft trading conditions in Singapore and Maldives markets. CDLHT also saw lower contribution from Australia Hotels on back of weaker AUD and reduced full year variable income contribution.

According to a report by OCBC, CDLHT’s gross revenue for the quarter climbed 5.8% YoY to $44.7m, while distributable income sank 21.8% YoY to $21.9m.

“We note that the distributable income does not include contribution from the Japan Hotels, which will only become available for distribution in 2Q16,” notes OCBC.

Meanwhile, average occupancy rate dipped 3.8ppt to 83.9% while average daily rate to S$191. As a result, revenue per available room (RevPAR) dropped 6.9% to $161.

OCBC further asserts that the group’s hotels continued to be impacted by weak corporate segment demand, as well disruptions from ongoing asset enhancement initiatives (AEI).