CDL Hospitality Trusts (CDLHT) posted net property income of S$59.7 million for the six months ended Jun 30, 2026, up 1.8 per cent year-on-year, helped by firmer trading at its hotels in the United Kingdom, New Zealand and Australia, and by lower funding costs.
Distributable income to stapled securityholders rose 9.7 per cent to S$27.5 million, translating into a distribution per stapled security (DPS) of 2.15 Singapore cents, 8.6 per cent higher than a year earlier. Revenue in the half-year increased 1.4 per cent to S$126.9 million. Interest expense fell 31.9 per cent to S$16.4 million after the trust refinanced higher-cost debt with S$250 million of perpetual securities issued in late 2025 and early 2026 and added S$163.6 million of interest-rate swaps.
Performance was mixed across markets. Singapore hotels lifted revenue per available room (RevPAR) 4.1 per cent YoY to S$172 despite softer second-quarter travel demand following the US-Iran conflict; NPI from the Singapore portfolio inched up 0.2 per cent. Grand Millennium Auckland’s RevPAR surged 10.4 per cent, driving a 60.4 per cent jump in NPI, while the Perth hotels grew NPI 50.2 per cent on improved conferencing income and cost controls. The UK portfolio’s NPI climbed 17.8 per cent as living-sector assets matured and hotel trading firmed, offsetting higher business-rates expenses.
Conversely, the Maldives resorts saw RevPAR slide 18.3 per cent and NPI drop S$2.6 million amid flight cuts by Middle Eastern carriers. Japan’s hotels recorded a 4.5 per cent RevPAR fall as weaker Chinese arrivals and a softer yen cut NPI by 11.5 per cent. Pullman Hotel Munich’s NPI slipped 13.1 per cent due to a lighter events calendar, while Florence’s Hotel Cerretani bucked the trend with an 11.5 per cent NPI rise on stronger leisure demand.
CDLHT said it expects further interest-expense savings in 2H 2026 as earlier debt repayments work through. It is progressing asset-enhancement projects at M Hotel, Copthorne King’s Hotel and Hilton Cambridge City Centre, and plans to complete the forward purchase of the 475-room Moxy Singapore Clarke Quay in 1H 2027, which will lift its domestic key count to 3,030. The managers will also examine capital-recycling options to “unlock underlying asset values”.
Chief executive officer Vincent Yeo attributed first-half growth in distributions to prudent capital management and resilient trading at most hotels despite geopolitical uncertainty. He noted that a packed events calendar, including the Singapore Grand Prix and major concerts, should underpin demand in the second half, while the portfolio enhancements are aimed at reinforcing competitiveness over the medium term.