Strong performance from its Japanese hotel business lifted Far East Hospitality Trust’s distributable income by 6.3% to S$20.19 million in the third quarter.
In its results released on Thursday (29 October), the trust said gross revenue rose 7.2% year on year to S$32.57 million in the third quarter, while net property income (NPI) increased 6.3% to S$27.57 million.
The growth was driven mainly by its Japanese hotel business. Boosted by the Nagoya Asian Games held in September, revenue per available room (RevPAR) at its Four Points by Sheraton Nagoya, Chubu International Airport rose 48.7% year on year, while revenue surged 71.7% to S$4.61 million.
The Singapore portfolio delivered mixed results. With tourism demand weak in the third quarter, the trust prioritised occupancy in its hotel business. Average occupancy rose 1.7 percentage points year on year to 88.2%, but the average daily rate (ADR) fell 2%, leaving RevPAR unchanged from a year earlier.
By contrast, the average daily rate for serviced residences rose 5.2%, while RevPAR increased 3.8% to a quarterly record of S$246. This offset lower contributions from Singapore hotels and commercial properties.
For the first nine months of the year, gross revenue rose 5.4% year on year to S$86.36 million, while net property income increased 1.9% to S$72.93 million. Together with lower finance costs, this lifted distributable income by 7.9% to S$53.87 million.
The trust’s units closed at S$0.50 on Wednesday (28 October), up 1.01%.
