CDL Hospitality Trusts Q1 NPI slides 14.2% to S$30 million on lower revenue
Revenue stood at S$63.4 million, down 2.8 per cent from S$65.3 million previously. The drop in revenue came on the back of lower contributions from all markets aside from the UK and Japan, the manager said on Wednesday (Apr 30).
Revenue per available (RevPAR) room came in mixed across the stapled group's portfolio. Its Singapore, New Zealand, Maldives and Italy markets logged declines while its Australia, Japan, UK and Germany markets experienced growth.
The group's core Singapore market posted declines for NPI of 19.6 per cent, at S$17.7 million from S$22.1 million in Q1 of FY2024. This came alongside lower RevPAR, which fell 15.8 per cent to S$173 from S$205.
As at March 2025, CDLHT's gearing stood at 41.8 per cent as its interest coverage ratio was 2.2 times and its weighted average cost of debt was 3.9 per cent.
Outlook: Poised to gain from falling rates
Speaking on the near to medium term outlook, the manager said that CDLHT is poised to benefit from further interest rate declines and will continue implementing hedging strategies as rates descend, with a transition to more fixed-rate borrowings.
It noted that recession risks were rising due to an unstable operating environment amid macroeconomic and geopolitical uncertainty.
Units of CDLHT closed on Tuesday 1.3 per cent or S$0.01 higher at S$0.795.
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