New Zealand properties offset CDLHT's losses in Singapore

In Q4, yields from New Zealand more than doubled to $5.2m.

CDL Hospitality Trusts anchored its growth from the inorganic contribution from the UK hotel as well as higher NPI growth from the NZ hotel as a result of higher variable rental income. This came as its Singapore properties suffered fair value losses.

According to OCBC Investment Research, its properties in New Zealand will fuel its growth this year.

"Going forward, CDLHT’s Grand Millennium Auckland is expected to continue to benefit from the strong RevPAR growth (24.9% in NZD terms in 4Q16), especially given the revised lease structure with higher variable income," OCBC said.

To recall, CDLHT's net property income from New Zealand more than doubled to $5.2m.

Meanwhile, OCBC said the trust's Singapore properties will suffer greater RevPAR declines this year with the upcoming 6% supply injection, continued weakness in the corporate segment with O&G firms, and a less packed MICE schedule during an odd-numbered year.