Singapore hotels a bane for CDL Hospitality Trust
They posted a 0.8% drop in RevPAR in Q1.
Whilst CDL Hospitality Trust (CDHLT) posted a healthy net property income for the past quarter, up 6.4% to $35.9m, it has continually faced challenges with its Singapore portfolio.
According to OCBC Investment Research, CDLHT's Singapore hotels posted a 0.8% drop in revenue per available room in the said quarter.
"This relatively mild decline was achieved despite the absence of the biennial Singapore Airshow," the brokerage firm noted.
It added, "Nonetheless, we expect the operating environment to remain challenging going forward given the weak corporate environment and incoming hotel supply – 130
rooms were added in 1Q17, while 2,826 more are expected in 2Q17."