FRASERS Hospitality Trust (FHT) recorded an increase in revenue per available room (RevPAR) across its portfolio in the first quarter ended Dec 31, 2024, on the back of sustained travel demand in all its key markets.
FHT is a stapled group comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust.
The stapled group’s key markets all recorded improved RevPAR in the first quarter, with Japan posting the largest rise, data released in a business update on Wednesday (Feb 5) showed.
Its Japan portfolio recorded an 18.3 per cent rise in RevPar to 12,193 yen (S$107.63), from 10,310 yen in the year-ago period. Within the country, Tokyo and Osaka experienced significant growth driven by robust inbound travel; Kobe observed a modest recovery, noted FHT.
For its Singapore portfolio, FHT’s RevPAR rose 4 per cent to S$256, from S$246 previously. While the average daily rates fell in the first quarter, occupancy rates improved.
“This is consistent with the broader Singapore market, where industry players have adjusted their pricing strategies to boost occupancy,” the group said.
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In Australia, RevPAR increased 4.4 per cent to A$236 (S$199.95), from A$226 before. This was primarily driven by higher occupancy, especially in Melbourne, where stronger demand in the corporate and leisure segments supported recovery.
For its portfolio in the UK, FHT noted that recovery was better in the first quarter than in the year-ago period, when demand was weaker than expected. RevPAR rose 2.6 per cent to £127 (S$214.71), from £124.
FHT said this was driven by a moderate rise in occupancy, while average daily room rates remained flat. However, higher labour costs posed challenges to overall profitability.
In Malaysia, RevPAR grew 3.7 per cent on the year to RM489 (S$149.14), from RM471 in the corresponding period of the prior year.
FHT said the Malaysian market’s key feeder markets, such as Singapore and China, continued to see positive year-on-year growth, even as the Malaysian ringgit has strengthened gradually over the past year.
The managers expect global tourism demand to chart a full recovery, despite ongoing economic and climate challenges. By September 2024, global tourism had reached 98 per cent of pre-pandemic levels.
Stapled securities of FHT closed S$0.005 or 0.9 per cent higher at S$0.575 on Wednesday.
