CDL Hospitality Trusts - Maybank Research 2024-10-30: Normalising Growth; Upside From Rate Cuts

• CDL Hospitality Trusts reported 3Q NPI of S$36.3m, -6.8% y-o-y. High base of last year, incoming supply, and higher expenses crimped the top line. RevPAR performance was uneven across markets. Singapore RevPAR was down on the year due to lower room rates. Gearing and debt cost rose sequentially.
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Mixed performance

• CDL Hospitality Trusts's 3Q24 revenue and NPI was S$67.5m and S$36.3m, -3.7% y-o-y and -6.8% y-o-y respectively. 9M revenue and NPI was S$194.8m and S$102.9m, +2.9% y-o-y and +1.0% y-o-y, respectively. Singapore accounted for 63% of 9M NPI, followed by UK (10%) and Germany (7%).
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  • UK saw flat RevPAR as absence of leisure events was offset by better corporate demand. Weaker margin and stabilisation expenses for The Castings led to an 8.8% fall in 3Q NPI for UK.
  • 3Q RevPAR for Germany rose 12.4% due to events and NPI was up 1.8% y-o-y.
  • Australia and Japan saw strong RevPAR and NPI growth.

Positioned to benefit from projected rate cuts

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Krishna Guha Maybank Research | https://www.maybank.com/ 2024-10-30 SGinvestors.io

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