CDL Hospitality Trusts announces 10.2% rise in Q2 DPU

CDL Hospitality Trusts (CDLHT) has announced a 10.2 per cent increase in its second-quarter distribution per unit (DPU) to 2.92 cents, up from 2.65 cents in the same period last year.

The trust said its gross revenue climbed 6.0 per cent to S$36.6 million, due mainly to higher revenue per available room (RevPAR) and strong growth in visitor arrivals.

Its net property income rose by 5.9 per cent from S$32.2 million in the second quarter of 2011 to S$34.1million in the second quarter of 2012.

Looking ahead, CDLHT said the supply of new hotel rooms in Singapore in 2012 is anticipated to contribute to a more competitive hospitality market.

Uncertainty in the eurozone debt markets as well as weakness in the European, US and China economies are likely to continue to weigh on accommodation demand in the next 12 months. This may impact visitor arrivals and the performance of the hospitality sector.

But it added that Australia’s buoyant natural resource sector is expected to bolster hotel room demand in Brisbane and Perth, given the static supply of new inventory.

Still, CDLHT said its strong exposure to Singapore’s growing tourism market will enable the trust to benefit from this long-term growth trend.

With its low gearing, the trust will continue to focus on acquisition opportunities to enhance returns to unitholders.

Source : Channel NewsAsia – 8 Aug 2012

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