CDL Hospitality Trusts

With the easing of Covid-19 travel restrictions driving higher occupancies, CDL Hospitality Trusts (CDLHT) recorded a 22.5% increase in net property income (NPI) to S$24.2 million for the first quarter ended 31 March 2022, compared to the same period last year. The higher NPI was driven by stronger contributions from the Maldives, UK, Singapore and Germany properties.

RevPAR for the Singapore hotels increased 40.7% year-on-year, and NPI improved 24.0% (up S$1.9 million). Market demand is recovering with staycations and corporate project groups still comprising the bulk of demand. Restrictions on weddings, meetings and social functions have further eased during the quarter. The latest relaxation of border measures on 26 April 2022 will add to the ease of travel for tourists, and could contribute to a significant and meaningful recovery for the hospitality sector.

Supported by strong tourism recovery, the Maldives Resorts posted a RevPAR growth of 65.6% year-on-year, and NPI improved 75.0% (up S$2.4 million).

For CDLHT’s UK portfolio, Q1 2022 included an inorganic contribution of S$0.4 million from the Hotel Brooklyn, which was acquired on 22 February 2022 under an inflation-adjusted fixed lease. Hilton Cambridge City Centre and The Lowry Hotel saw growth in RevPAR for Q1 2022 to £86 as compared to £10 in Q1 2021.

Across the Europe portfolio, most remaining travel restrictions in the UK, Germany and Italy were lifted during the quarter with international borders fully open to all travellers. The lifting of border restrictions, alongside the return of major MICE and sporting events, is expected to pave the way for further recovery of the hospitality industry.

Australia hotels recorded NPI loss of S$0.6 million in Q1 2022 as compared to the fixed rental income of S$1.2 million in the same period last year. NPI for New Zealand hotels declined 24.4%, due to lower room utilisation as the government eased COVID-19 restrictions and lifted border restrictions. Grand Millennium Auckland, which operated as a managed isolation facility since July 2020, registered RevPAR decrease of 6.0% year-on-year.

CDLHT said, “Looking ahead, international tourism volumes are likely to depend largely on the return of traveller confidence and corporate travel policies. CDLHT will continue to pursue suitable acquisitions to diversify and augment its income streams, as well as evaluate divestment opportunities as they arise to unlock underlying asset values and/or recycle capital for better returns."

Please click here for CDLHT’s full Q1 2022 update.

First Sponsor Group Limited

First Sponsor Group Limited launched its 48.2%-owned development project, Oasis Mansion (previously known as Bolong Bay Garden) in Humen, Dongguan for presale of its first residential block comprising 115 units on 31 March 2022. Presales for the remaining seven residential blocks will be launched progressively in 2022 and 2023, along with other property development projects including the 17.3%-owned Time Zone and 36%-owned Hefu project (previously known as the Boyang project) in Humen, 95%-owned Primus Bay in Panyu, Guangzhou and Plot E1 of the Millennium Waterfront in Wenjiang, China.

Due to the resurgence of COVID-19 cases in China, lockdowns and movement restrictions were implemented in Shanghai, Dongguan and Chengdu, cites where the First Sponsor operates. This resulted in a delay in the collection of net proceeds from the auction sales of two mortgaged properties in Shanghai (of which one was successfully bid by First Sponsor) as part of the debt recovery process on defaulted loans, delay of property financing loan repayments in Dongguan, and its two Chengdu hotels being used as quarantine hotels. The PRC hotels recorded a loss before interest, tax, depreciation and amortisation (LBITDA) of RMB 0.5 million in Q1 2022 (Q1 2021: EBITDA of RMB 1.9 million).

As COVID-19 restrictions eased in Europe, First Sponsor’s European operating hotels continued to show signs of recovery in the first quarter. However, the improvement in hotel trading was significantly offset by higher energy and labour costs and a reduction in COVID-19-related government subsidies in the Netherlands and Germany. As a result, the European operating hotels recorded a LBITDA of €2.7 million in Q1 2022 (Q1 2021: LBITDA of €4.4 million). First Sponsor remains optimistic on the eventual recovery of the European hospitality business and entered into an agreement to acquire the entire 95% equity interest in the Dutch Bilderberg hotel portfolio at €180.6 million from its 33%-owned associated company. The acquisition is expected to be completed on 2 May.

Please click here for First Sponsor’s full Q1 2022 update.