CDL Hospitality Trusts H1 NPI drops 11.9% to S$58.6 million as W Hotel renovations continue

[SINGAPORE] Net property income (NPI) for CDL Hospitality Trusts (CDLHT) fell 11.9 per cent to S$58.6 million for the first half ended June 30, 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.

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.

Stapled securities of CDLHT closed on Tuesday 0.59 per cent or S$0.005 lower at S$0.85.