The manager of CDL Hospitality Trusts (CDLHT) declared distribution per stapled security (DPS) of 3.44 cents for the 2HFY2020 ended December, down 29.2% from DPS of 4.86 cents a year ago.
This includes the capital distribution of proceeds from the sale of Novotel Singapore Clarke Quay (NCQ) that came up to some $20.0 million for the 2HFY2020.
FY2020 DPS saw a 45.1% y-o-y plunge to 4.95 cents from 9.02 cents a year ago.
2HFY2020 distribution to stapled securityholders fell 28.7% y-o-y to $42.1 million after retention.
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Distribution to stapled securityholders for the FY2020 fell 44.8% y-o-y to $60.4 million.
Total revenue for 2HFY2020 fell 36.5% y-o-y to $65.5 million due to the “profound impact” of the Covid-19 pandemic on the group’s overall performance.
Most of CDLHT’s hotels were operating at mid to low occupancies with the exception of its five Singapore hotels and the hotel in New Zealand.
2HFY2020 net property income (NPI), accordingly, fell 46.2% y-o-y to $39.6 million.
The lower numbers were partly mitigated by the contributions to portfolio revenue from its hotels in Singapore, New Zealand and Australia, which came up to some $47.8 million.
FY2020 revenue dropped 40.3% y-o-y to $117.6 million while NPI for FY2020 plunged 50.9% y-o-y to $69.3 million.
This was mainly due to the Covid-19 outbreak which led to the absence of demand for tourism and enforcement of international travel restrictions.
Hotels, were either closed on a temporary basis or have experienced a varying degree of occupancy declines since March 2020.
Occupancies for the New Zealand and Singapore hotels were supported by demand for accommodation facilities which are used for isolation purposes.
The group’s results were partially mitigated by contribution from the Singapore, New Zealand and Australia hotels amounting to some $79.9 million.
2HFY2020 average occupancy rate as at Dec 31, 2020 for the five Singapore hotels increased 1 percentage point y-o-y to 89.6%, while average daily rate (ADR) fell 60.1% y-o-y to $73.
Revenue per average room (RevPAR) fell 59.7% y-o-y to $65.
For the FY2020, average occupancy rate for the five Singapore hotels fell 7.2 percentage points y-o-y to 79.6%. ADR fell 50.3% y-o-y to $88. RevPAR for FY2020 fell 54.4% y-o-y to $70.
Including W Hotel, 2HFY2020 and FY2020 average occupancy rate fell 1.9 and 8.3 percentage points to 86.1% and 78.2% respectively.
ADR for the six Singapore hotels in 2HFY2020 and FY2020 fell 52.4% y-o-y and 46.2% y-o-y to $96 and $101. RevPAR for the 2HFY2020 and FY2020 fell 53.5% y-o-y and 51.4% y-o-y to $82 and $79.
RevPAR for the Maldives fell 60.7% y-o-y to US$44 ($58.5) for the 2HFY2020.
New Zealand’s RevPAR for 2HFY2020 fell 5.5% y-o-y to NZ$164 ($155.97).
SEE: With travel back on the cards, hospitality 'waiting for lift-off': DBS
Germany’s RevPAR for the same period fell 84.1% y-o-y to €18 ($29), while Italy’s RevPAR for the 2HFY2020 fell 91.8% y-o-y to €13.
RevPAR in Japan for 2HFY2020 fell 69.6% y-o-y to 2,287 yen ($29.17).
In the UK, RevPAR for 2HFY2020 fell 68.8% y-o-y to £42 ($76.48).
As at Dec 31, 2020, cash and cash equivalents stood at $109.1 million.
“The Covid-19 pandemic resulted in the worst crisis in the history of international tourism and travel. With the varying levels of success experienced by various countries in containing the virus, the recovery trajectory remains uncertain,” says Vincent Yeo, CEO of the managers.
“We have been navigating the crisis by working with our operators and lessees to secure alternative revenue channels to safeguard the top line and implemented tight costs control measures to protect the bottom line.”
“With the commencement towards travel normalcy activated by the availability of the vaccines, it will still take time before mass travel is likely to resume in full force. Nonetheless, as we move towards a recovery, we believe that countries which have demonstrated strong ability to contain the situation, such as Singapore, are likely to rank among the top choice for travel and MICE events,” Yeo adds.
As at Dec 31, 2020, CDLHT has a gearing of 37.5% and debt headroom of $689.0 million (at 50% gearing limit).
Units in CDLHT closed flat at $1.19 on Jan 28.
