CDL Hospitality Trust revenues hit by Zika outbreak

RevPAR fell 7.2% to $168 in 3Q.

3Q16 revenue per available room (RevPAR for CDL Hospitality Trust (CDLHT)'s Singapore hotels dropped 7.2% YoY to S$168 on the back of a 7.5% drop in the average daily rate (ADR) to S$186.

Moving forward, oversupply remains a key concern affecting topline growth, said OCBC Investment Research.

RevPAR fell 7.2% to $168 in 3Q.

3Q16 revenue per available room (RevPAR for CDL Hospitality Trust (CDLHT)'s Singapore hotels dropped 7.2% YoY to S$168 on the back of a 7.5% drop in the average daily rate (ADR) to S$186.

Moving forward, oversupply remains a key concern affecting topline growth, said OCBC Investment Research.

CDLHT highlighted a slight slowdown in bookings in September, which they attributed to travel advisories issued against Singapore following the Zika outbreak. As expected, OCBC Investment Research notes that the RevPAR drop of 7.5% was less than the 9.2% decline seen in 2Q16, while Zika's impact on bookings was limited.

Looking ahead, the research house said that oversupply continues to be a worry, with hotel room supply expected to increase 4.1% in 2016, and a further 6.1% in 2017 according to Horwath HTL.