CDL Hospitality Trusts’ Maldives assets to continue floundering: analysts

NPI may slip by up to 9%.

CDL Hospitality Trusts will continue to be plagued by weak performance from its Maldives assets, on back of persistent forex losses and soft demand.

According to a report by CIMB, net property income (NPI) for CDLHT’s Maldives assets to slip by as much as 9%. Further, CIMB anticipates the resorts to just earn slightly above their respective base rents.

“Afflicted by the weaker appetite for luxury markets as well as relative strength of US$ against currencies of its major source markets, especially Rmb, euro and ruble, the Maldives resorts recorded a 29% yoy decline in RevPAR in 1Q16,” CIMB notes.

On the flip side, UK may be the sole bright spark for CDLHT. CDLHT’s assets in the UK are expected to enjoy a windfall, with NPI seen jumping two-fold as the full year contribution from Hilton Cambridge City comes through.

CIMB also expects an 18% YoY spike in RevPAR on back of a bump in ADR.