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Financial Highlights

Consolidated Statements of Net Income for 1Q FY2019 and 1Q FY2018/19

Consolidated Statements of Comprehensive Income for 1Q FY2019 and 1Q FY2018/19

Balance Sheet

Review of Performance

Revenue and Net Property Income - 1Q FY2019 vs. 1Q FY2018/19

1 Computation is based on the financials rounded to the nearest dollar. Any differences between the individual amounts and total thereof are due to rounding
2 Sale of China assets was completed on 18 May 2018


Gross revenue and net property income ("NPI") for 1Q FY2019 were S$46.5 million and S$21.3 million, a decrease of S$1.7 million and increase of S$1.1 million respectively as compared to 1Q FY2018/19. The lower revenue was due to the master lease arrangements for the new hotels in Korea and Japan, while the China portfolio (in prior period) was under management contracts. The increase in NPI was lifted by the full quarter contributions from the new hotels, partially offset by the absence of earnings from China portfolio and the unfavourable FX movement in AUD (-4.9%).


The decrease in NPI of S$0.3 million was mainly attributable to unfavourable foreign exchange movement (S$0.5 million). However, it was partially mitigated by refund of prior year land tax surcharge of S$0.7 million received this quarter.

Our Sydney hotels continued to face competitive market condition and were affected by reduction in average room rates. Pullman Sydney Hyde Park's performance was better than last year due to stronger conferencing performance.

Pullman & Mercure Melbourne Albert Park's performance was affected by soft market conditions and refurbishment of Mercure rooms.

Pullman & Mercure Brisbane King George Square achieved y-o-y growth in both occupancy and room rates as a result of well-executed strategies in driving higher occupancy in the public and corporate segments.


Sunroute Ariake's performance was in line with last year while Namba Hotel's performance was slightly muted due to new hotel supply in Osaka.

With the completion of acquisition of WBF East and WBF West in September 2018 and WBF Honmachi in December 2018, these three hotels contributed S$1.4m of earnings for 1Q FY2019 to the Japan portfolio.


Splaisir Dongdaemun and ibis Insadong started contributing to the Group following the completion of the acquisition in May 2018 and December 2018 respectively.


Income from Park Hotel Clarke Quay for 1Q FY2019 was in line with last year.

Income available for distribution

Income available for distribution for the quarter was S$15.6 million. With the retention of S$1.0 million for working capital in the quarter, income to be distributed for the quarter would be S$14.6 million, a decrease of S$0.7 million (4.8%) over the same period last year. The decrease was mainly due to absence of China sale proceeds distribution of S$1.8 million and mitigated by higher NPI of S$1.1 million.


Demand for hotel accommodation in Sydney is expected to remain robust in the near term although increase in supply may place downward pressure on room rates. Looking ahead, the Melbourne hotel market conditions are expected to remain soft over the medium term as new supply of hotel rooms enters the market. Comparatively limited upcoming supply of rooms over the near term can help to lift the performance of the hotel market in Brisbane, which is further supported by the new runway in Brisbane Airport, scheduled to open in 2020.

The hotel sector in the cities of Tokyo and Osaka are expected to benefit from the Rugby World Cup 2019, which is expected to draw both international and domestic travellers. In addition, the hotel market in Tokyo will be supported by the 2020 Olympics while a new attraction in Universal Studios Japan, slated to open in 2020, provides further boost to the hotels in Osaka. However, the Osaka hotel market is facing more supply of rooms in the medium term.

Recovering demand from China and steady growth from other source markets have resulted in strong y-o-y growth of 16.9% in foreign arrivals into South Korea for the period year-to-date ("YTD") June 20191 . With moderate upcoming supply in Seoul, increase in inbound travellers is expected to continue driving the performance of the hotel market.

International arrivals into Singapore remained healthy with YTD May 2019 figures posting a 1.5% y-o-y growth to 7.8 million2 , and greater connectivity to Singapore via new air routes is expected to continue driving inbound arrivals. Amidst relatively modest supply, the growth in inbound travellers bodes well for the hotel sector in the near term but weaker corporate demand will pose headwinds for the sector.

Proposed Combination

On 3 July 2019, A-HTRUST and Ascott Residence Trust jointly announced a proposed combination, which will result in the combined entity becoming the largest hospitality trust in Asia Pacific and amongst the largest globally ("Combination"). The Combination will be effected by way of a trust scheme of arrangement. Indicatively, the scheme meeting to obtain A-HTRUST stapled securityholders' approval on the scheme is expected to be held in October 2019, and the Combination is expected to complete by December 2019.

Please refer to the joint announcement dated 3 July 2019 for further information on the Combination.

1 Source: Korea Tourism Organisation.
2 Source: Singapore Tourism Board.