[ad_1]
FRASERS Hospitality Trust (FHT) had mixed performance in revenue per available room (RevPAR) across its markets for the nine months ended June, indicated its business update on Thursday (Aug 1).
The trust had a 7.2 per cent year-on-year drop in 9M RevPAR in Singapore, with occupancy down six percentage points.
“This was largely due to the easing of pent-up travel demand, cost inflation and a relatively strong Singapore dollar affecting inbound travel. Notably, inbound travel from China has yet to fully recover to pre-pandemic levels,” the trust said.
Fraser Suites Singapore’s extended stay segment was also affected by a growing supply of private residential units, which “compressed rental yields and created a more competitive environment for the relocation segment”, it added.
9M RevPAR was also down in the UK, declining by 2.4 per cent as demand for corporate and transient travel recovered gradually under challenging market conditions. Demand in the extended stay segment also fell across most properties.
But FHT’s remaining markets – Australia, Japan, Malaysia and Germany – were more upbeat.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
In Australia, 9M RevPAR was up 5.8 per cent, thanks to major city-wide events and stronger demand across the corporate, group and leisure segments. However, average daily rates (ADR) decreased by 1 per cent, due to new supply in the Melbourne market still being absorbed.
In Japan, the 9M RevPAR of ANA Crowne Plaza Kobe rose 13.5 per cent, driven by growth in occupancy and ADR, due to the favourable Japanese yen and supported by the return of the meetings, incentives, conferences and exhibitions (Mice) business and leisure segment.
In Malaysia, The Westin Kuala Lumpur’s 9M RevPAR increased by 21.5 per cent with recovery of the transient and corporate segment demand and the favourable ringgit.
In Germany, the Maritim Hotel Dresden was supported by the recovery in domestic travel and the return of Mice business.
Looking ahead, FHT expects international tourism to “recover completely in 2024, backed by strong demand, enhanced air connectivity and the continued recovery of China and other major Asian markets”.
FHT ended Thursday flat at S$0.42.
[ad_2]
Source link