Hospitality S-REITs’ RevPAR mostly resilient as tourism activity normalises
Singapore real estate investment trusts (S-REITs) with hospitality assets have reported mostly stable operating performance in the third quarter even as tourism activity normalises following the post-pandemic travel boom.
Business updates released last week show that revenue per available room (RevPAR) for most trusts remained relatively resilient, despite a high base from the strong growth seen in the same period a year earlier. $Acro HTrust USD(XZL.SI)$ $CapLand Ascott T(HMN.SI)$ $CDL HTrust(J85.SI)$ $Far East HTrust(Q5T.SI)$ $Frasers HTrust(ACV.SI)$
1. $CapLand Ascott T(HMN.SI)$
CapitaLand Ascott Trust reported an 8% improvement on year in gross profit for the third quarter ended September, as its portfolio reconstitution initiatives yielded positive results. On a same-store basis, excluding acquisitions and divestments, gross profit would have been 2% higher on year, due to stronger operating performance.
The trust’s revenue per available unit (RevPAU) rose 3% on year to S$158, staying above pre-pandemic levels. This was mainly due to higher average occupancy, while average daily rates (ADR) remained relatively stable.
2. $Far East HTrust(Q5T.SI)$
Far East Hospitality Trust’s RevPAR for hotels rose 2.8% on year in the third quarter on the back of higher ADR, as all hotels exited government contracts, giving the portfolio better pricing flexibility.
RevPAU from serviced residences also rose 2.5% on year in Q3.
3. $CDL HTrust(J85.SI)$
CDL Hospitality Trusts saw mixed RevPAR performance across its portfolio, with around half the markets – including Australia, Japan and Germany – experiencing growth in the third quarter.
RevPAR for its Singapore properties, however, fell 10.3% on year in Q3, as demand normalised after a period of exceptional ADR growth in 2023.
Nevertheless, its RevPAR in Singapore remained 18.9% higher compared with pre-pandemic levels in Q3 2019.
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