30-07-2025
CDL Hospitality Trusts H1 DPS falls 21.1% to S$0.0198 as W Hotel renovations continue
[SINGAPORE] The distribution per stapled security (DPS) for CDL Hospitality Trusts (CDLHT) fell 21.1 per cent to S$0.0198 for the first half ended Jun 30, from S$0.0251 in the previous corresponding period.
This comes as the total distribution to stapled securityholders fell 20.2 per cent to S$25.1 million from S$31.4 million in the first half of last year.
Net property income (NPI) fell 11.9 per cent to S$58.6 million for H1 2025, from S$66.5 million in the previous corresponding period.
Its S$7.9 million net NPI decline was largely driven by ongoing room renovations at the W Hotel, which accounted for a S$3.2 million drop. These renovations are set to be completed by early 2026.
Revenue declined 1.8 per cent to S$125.1 million after most portfolio markets outside the UK, Japan and Australia performed worse, the trust's manager said on Wednesday (Jul 30).
Revenue per available room (RevPar) came in mixed across the stapled group's portfolio. Its Singapore, New Zealand, Maldives, UK and Italy markets logged declines, while its Australia, Japan, and Germany markets experienced growth.
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The group's core Singapore market NPI fell 20.9 per cent to S$30.2 million, from S$38.3 million in H1 of the 2024 financial year. This came alongside lower RevPar, which fell 14.2 per cent to S$165 from S$193. Occupancy for Singapore hotels was down 5.2 percentage points at 73.2 per cent for the latest H1, from 78.4 per cent previously.
CDLHT's Singapore hotels RevPAR was weighed down by a strong base effect when compared with the previous year's first half, where there was strong demand from large-scale events. It was also affected by subdued corporate demand, owing to global and economic uncertainties and exacerbated by tariff concerns, said the manager. It added that room renovations at W Singapore also played a part in the drop.
The declines for the Singapore portfolio came despite visitor arrivals for the first half of 2025 rising 1.9 per cent from the year-ago period to 8.3 million.
The UK market, which makes up the largest share of CDLHT's portfolio after Singapore, recorded 3.8 per cent lower hotels RevPAR at £114 (S$196) and 13.1 per cent NPI growth across its four hotels. It also posted NPI gains in its living assets business, which includes build-to-rent property and purpose-built student accommodation segments.
As at Jun 30, CDLHT's gearing stood at 42 per cent and its interest coverage ratio was 2.11 times.
Poised to benefit from more favourable rates
CDLHT is poised to benefit from a potentially more favourable rate environment due to its 'low fixed to floating debt profile' and 'interest rate hedging strategy', said Vincent Yeo, CEO of CDLHT's managers.
'Capital recycling remains an integral part of our strategy to unlock value and reinforce portfolio resilience,' he added.
Stapled securities of CDLHT closed on Tuesday 0.59 per cent or S$0.005 lower at S$0.85.
