CDL trust beats earnings estimate
CDL Hospitality Trusts yesterday posted fourth-quarter distributable income of $12.4 million - about 34 per cent above its forecast.
The distribution per unit to investors came in at 1.76 cents.
The strong showing comes on the back of a buoyant hospitality market, with rising tourist arrivals. The industry expects room rates to rise by at least 15 per cent this year.
The trust’s four hotel assets in Singapore, which include Orchard Hotel and Grand Copthorne Waterfront Hotel, achieved an average occupancy rate of 88 per cent and an average daily rate of $166 in the fourth quarter. Revenue per available room rate was $146, nearly 17 per cent above its forecast.
It also has a hotel in New Zealand, acquired late last year.
Mr Vincent Yeo, chief executive of M&C Reit Management, said room rates at its Singapore hotels rose 20 to 25 per cent last year.
‘Barring unforeseen circumstances, there should be another healthy rate increase this year.’
It would convert existing space into additional hotel rooms at Grand Copthorne Waterfront Hotel. This would increase the hotel’s capacity by about 4 per cent.
Also, it is studying the possibility of enhancing the Orchard Hotel Shopping Arcade or use the area to extend the hotel.
Mr Yeo said the trust is looking for one or two more assets in Singapore as it works towards doubling its size within three years of listing.
Elsewhere, its target markets include Australia, Vietnam and China, to name a few.
The trust listed last July.
Source : Straits Times - 1 Feb 2007
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