CDL Hospitality Trusts dropped as much as 3.6% to a four-week low after it posted weaker-than-expected quarterly results, as a weaker macroeconomic environment hurt Singapore’s hospitality sector.
By 11:56 a.m., units of CDL Hospitality, which owns hotels, were traded at $1.995, on a volume of 5.7 million units, 4.8 times its average daily volume over the last five sessions.
CDL Hospitality Trusts, which owns hotels, said its distribution per unit for the third quarter was 2.72 cents, compared with 2.77 cents a year earlier, hurt by slightly lower revenue per available room for its Singapore hotels.
OCBC Investment Research said the results were below its expectations, due to a poor economic outlook hurting Singapore hotels and lower fixed rent contribution from its Australian hotels.
“The room rates for CDL came in weaker than expected, and investors are also concerned about the weaker outlook for Singapore’s hotel sector,” said an analyst.
Far East Hospitality Trust, which owns hotels and serviced residences in Singapore, fell nearly 2% to $0.995, with 4.5 million units traded, 1.4 times its average daily volume over the last five sessions.
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