Far East Hospitality Trust’s NPI drops 8.3% in Q1

Gross revenue also declined by 6.8% YoY.

Far East Hospitality Trust reported an 8.3% year-on-year (YoY) drop in net property income (NPI) to $23m for the first quarter of 2025 (Q1 2025), due to higher property taxes.

The trust’s gross revenue also declined by 6.8% YoY, driven by reduced master lease revenue from its Hotels and Serviced Residences segment..

The revenue dip was partially offset by stronger performance from the commercial premises, where revenue rose by 4.9% YoY, supported by improved occupancy.

The hotel portfolio performance was softer YoY due to lower leisure demand, with the absence of major events such as high-profile concerts by Bruno Mars, Coldplay, and Taylor Swift in Q1 2024.

As a result, room rates were moderated to support occupancy, which held firm at 79%, leading to a 6% decline in revenue per available room (RevPAR) to $135.

In serviced residences, average occupancy declined 9.7 percentage points YoY to 73.6%, due to the now-completed lift replacement works at VRRQ and the transition following the concurrent departure of a few large groups.

Despite the decline, the average daily rate rose by 5.9% to $280, supported by a higher proportion of short-stay and leisure guests.

Overall, revenue available per unit slipped 6.5% YoY to $206.