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CDL Hospitality Trust tags tourism as long-term growth driver

Pic credit: CDL Hospitality Trust

Thanks to Singapore's booming attractions.

In a disclosure to the Singapore Exchange, CDL Hospitality Trust said Singapore's tourism landscape is becoming even more vibrant with the launches of multiple attractions for tourists. These include newly opened attractions such as the Maritime Experiential Museum at the Resorts World Sentosa, Gardens by the Bay, and Marine Life Park; as well as upcoming attractions like the River Safari, Singapore Sports Hub and National Art Gallery, all opening within the next three years.

CDL Hospitality also disclosed its management strategy for sustaining growth. First is to focus on acquisitions, second to implement asset enhancement initiatives to optimise asset potential, and third is to maintain a healthy balance sheet and enhance financial flexibility.

These discussions came as CDL Hospitality Trust announced its latest 4Q12 results, which saw the firm grow its gross revenue by just 1.4% yoy to S$38.3 million. It attributed the disappointing low revenue growth to "a more challenging global economic environment where travellers remained cautious about travel expenditure" and "fixed rent contribution from the Australia Hotels being slightly lower y-o-y due to translation loss arising from the weaker Australian dollar."

Meanwhile, net property income for the same period grew a marginal 0.2% yoy.

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