CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q1 2010 Earnings Presentation
53 slides from CDL Hospitality Trusts's earnings presentation, Apr 30, 2010
Slide 1: Presentation of 1Q 2010 Results
Presentation of 1Q 2010 Results 30 April 2010
Slide 2: Disclaimer
Disclaimer The value of Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by the H-REIT Manager or M&C Business Trust Management Limited, as trustee of CDL Hospitality Business Trust (the “HBT Trustee-M
Slide 3: Table Of Contents
Table Of Contents Highlights Performance Of CDL Hospitality Trusts Healthy Financial Position Outlook Active Asset Management Update On Acquisition Strategy Annexe ♦ Background And Structure Of CDL Hospitality Trusts ♦ Information On CDL Hospitality Trusts Hotels 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary
Executive Summary 1 Revenue increased 18% YoY largely due to a 16% increase in RevPAR and 1 incremental contribution from recently acquired Australia Hotels(1) CDL-HT Financial Highlights 1Q ’10 1Q ’09 Growth Gross Revenue (2) 26,605 22,531 18.1% Net Property Income (2) 24,719 20,551 20.3% Income Av
Slide 6: Executive Summary
Executive Summary 2 Room rates increased 16% compared to the previous quarter to S$207, the 2 highest average room rate achieved in the last 5 quarters, as continued buoyant demand presented yield enhancement opportunities CDL-HT Singapore Hotels Quarterly Occupancy Rates and ARR Occupancy ARR (S$)
Slide 7: Performance Of CDL Hospitality Trusts
Performance Of CDL Hospitality Trusts 7
Slide 8: Year-On-Year Hotel Performance: 1Q '09 Vs 1Q '10
Year-On-Year Hotel Performance: 1Q ’09 Vs 1Q ’10 CDL-HT Singapore Hotels ARR: 1Q '09 v 1Q '10 S$ S$ RevPAR: 1Q '09 v 1Q '10 215 +3.0% 210 207 200 +15.8% 205 201 174 200 195 150 190 150 1Q '09 1Q '10 Occ: 1Q '09 v 1Q '10 100 100% +9.5 pp or +12.7% 95% 90% 84.3% 85% 50 80% 74.8% 75% 70% 65% 0 1Q '09 1
Slide 9: Gross Revenue, NPI And Income Available For Distribution Per Unit
Gross Revenue, NPI And Income Available For Distribution Per Unit: 1Q ’09 Vs 1Q ’10 CDL-HT Hotels (1) Gross Revenue Income Available For S$’000 35,000 +18.1% Distribution Per Unit (2) S$ cents 30,000 26,605 3.00 +18.3% 25,000 22,531 20,000 2.58 Incremental pro-forma 15,000 2.50 – 0.12 contribution 1
Slide 10: Healthy Financial Position
Healthy Financial Position 10
Slide 11: Strong Balance Sheet
Strong Balance Sheet (1) S$ Debt Values (S$ M) 600 546 Debt / Assets Ratio 450 35% 291 300 30% 150 25% 0 As at 31 Dec '09 As at 31 Mar '10 20% 15% 30.9% S$ Total Assets (S$ M) 2,000 1,769 19.1% 10% 1,521 1,500 5% 1,000 0% As at 31 Dec '09 As at 31 Mar '10 500 0 As at 31 Dec '09 As at 31 Mar '10 (1)
Slide 12: Debt Facility Details
Debt Facility Details Debt Terms Credit Metrics Secured borrowings Fitch Issuer Default Rating: 3-year S$350M bank facility from DBS Bank Limited BBB- Key terms: Tenure: 3 years from 30 April 2009 Interest: S$ SOR (1) + interest margin Interest Cover: of 2.60% (2) 7.5 x Unsecured bor
Slide 13: Outlook
CDL HOSPITALITY TRUSTS Outlook 13
Slide 14: Positive Outlook
Positive Outlook Positive Trends For Hospitality In Singapore, New Zealand and Australia • Economic recovery and increasing global travel are driving strong demand for accommodation • Strong commodity sector will benefit resource-rich cities like Perth and Brisbane Significant Upside From A Strong S
Slide 15: Room Rates on the Uptrend
Room Rates on the Uptrend CDL-HT Singapore Hotels Performance Occ ARR RevPAR Quarterly Occ, ARR & RevPAR Trend for Singapore Hotels 280 140.0% 255 • First q-o-q increase 260 250 130.0% in Average Room 240 Rates since declining 220 222 214 220 120.0% in 3Q 2008 207 ARR, RevPAR (S$) 201 • Yield manage
Slide 16: Record High Visitor Arrivals
Record High Visitor Arrivals 4 Consecutive Months of Record Visitor Arrivals ('000) Record #1 Record #2 Record #4 1,000 954 971 Record #3 911 928 908 888 885 900 857 859 826 813 791 800 772 758 690 700 600 Dec Dec Jan Feb Mar Visitor Arrivals for 2007 Visitor Arrivals for 2008 Visitor Arrivals for 2
Slide 17: Strong Signs of Improving Demand
Strong Signs of Improving Demand YOY Change in Visitor Arrivals YOY Change in Changi Passenger Movements YOY Change YOY Change in '000 24.2% 21.5% '000 18.8% 180 167 549 17.7% 17.3% 547 560 136 137 140 440 9.7% 10.1% 9.4% 338 311 100 84 9.2% 8.4% 320 283 7.2% 65 6.0% 54 6.0% 60 200 175 188 0.5% 20 8
Slide 18: Potential Supply Of Hotel Rooms Until 2012
Potential Supply Of Hotel Rooms Until 2012 Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 50,000 2009 to 2012 CAGR = 7.8% 45,000 2,168 42,699 5,883 5,823 532 40,000 1,973 2,795 MBS: 1,537 rooms Not Opened 1,350 Other Hotels: 1,258 rooms 3,028 35,000 34,116 2,560 Opened 34,116
Slide 19: Potential Supply Of Hotel Rooms Until 2012
Potential Supply Of Hotel Rooms Until 2012 Current and Expected Hotel Room Supply in Singapore Name of Hotel No. of Horwath Location Expected Name of Hotel No. of Horwath Location Expected Rms Rating Opening Rms Rating Opening Fullerton Bay Hotel 100 Luxury / Upscale City Centre 2010 Orchid Hotel 27
Slide 20: STB Expects Strong Growth in Visitor Arrivals
STB Expects Strong Growth in Visitor Arrivals Actual & Forecast Visitor Arrivals in Singapore Thousands Expected 5-year CAGR 18,000 = 6.3% to 8.1% 17,000 16,000 Forecast for 2010 - Expected 5-year 11.5 to 12.5 million CAGR = 5.2% to 6.9% 14,000 visitors to 11,500 to 12,500 Singapore, a 18.8% 12,00
Slide 21: Opportunity: Higher Conversion of Passengers Passing Through Changi Airport
Opportunity: Higher Conversion of Passengers Passing Through Changi Airport into Visitor Arrivals Millions 60.0 18.8% 19.3% 19.3% 19.5% 19.2% 19.4% 20.2% 50.0 40.0 36.7 37.7 37.2 35.0 32.4 30.4 30.0 20.0 10.0 6.3 6.8 7.2 7.2 7.2 6.5 5.7 1.3 0.0 2004 2005 2006 2007 2008 2009 2010 Annual Changi Passen
Slide 22: Opportunity: Boosting Arrivals from Neighbouring Countries
Opportunity: Boosting Arrivals from Neighbouring Countries Breakdown of Visitor Arrivals to Singapore Growth in Top 10 Visitor Growth in Top 10Arrival VisitorCountries for Singapore For YTD Feb 2010 ArrivalYTD Feb ’10 Countries vs YTD Feb ’09 for Singapore (YTD Feb '10 vs. YTD Feb '09) #1 Indonesia,
Slide 23: Resorts World Sentosa Attractions Ramping Up
Resorts World Sentosa Attractions Ramping Up More attractions slated to open in the later part of 2010 and in 2011 Casino To be progressively ramped- up with more gaming tables to be opened Marine Life Park Maritime Xperiential Museum Equarius Water Park To be opened in 2011 Universal Studios Singap
Slide 24: Marina Bay Sands to be Fully Operational by Mid-2010
Marina Bay Sands to be Fully Operational by Mid-2010 Marina Bay Sands to attract up to 70,000 – 80,000 visitors daily • Opened on 27 April 2010 offering casino, 963 hotel rooms, 10 restaurants and bars, 35 shops, part of the convention center and the public promenade • Beginning to attract key MICE
Slide 25: Structural Demand Pull Factors
Structural Demand Pull Factors Boosting New/Repeat Visitors & Average Length of Stay ALL YEAR ROUND Universal Studios – Marketing S’pore as a Mono Travel Destination Asia’s (ex-Japan) first Universal Studio theme park with 24 attractions,18 of them original/adapted for Demand Singapore including t
Slide 26: Other Demand Pull Factors
Other Demand Pull Factors Upcoming Tourism Developments Youth Olympic Games 2010 The 28,000 sqm International Cruise First Youth Olympic Games, to last 12 days Terminal in 2011 targets to attract 1.6 from 14 to 26 August 2010 million cruise passengers by 2015 Receiving ~3,600 athletes & 800 of
Slide 27: Active Asset Management
CDL HOSPITALITY T RUSTS Active Asset Management 27
Slide 28: Asset Management
Asset Management 1) Yield management in 2010 through opportunities to enhance room rates and capitalise on periods of high occupancy 2) Further progress being made on the repositioning of the Orchard Hotel Shopping Arcade • The Galleria section of the shopping arcade to be anchored by two tenants wi
Slide 29: Update On Acquisition Strategy
Update On Acquisition Strategy 29
Slide 30: Acquisition Opportunities From Multiple Sources
Acquisition Opportunities From Multiple Sources M&C Third Parties Owns / operates > 100 hotels globally Divestment of assets Right of First Refusal(1) to future sales of Singapore ♦ By hospitality service providers who are hotels owned by M&C or offers of Singapore hotels increasingly looking
Slide 31: CDL-HT Target Markets
CDL-HT Target Markets Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan Most major cities across Asia reported a significant growth in 1Q 2010 RevPAR following an improved glo
Slide 32: Background And Structure Of CDL Hospitality Trusts
Background And Structure Of CDL Hospitality Trusts 32
Slide 33: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance • IPO on 19 July 2006 Announcement of High (10 Jul ’07) Unit price increase Equity Fund Raising $3.00 = S$2.28 = S$2.66 IPO to 29 Apr 2010 = +128.9% • Listed on SGX Mainboard 31 Dec'07 Announcement of Announcement of Novotel = S$2.35 Australia Hot
Slide 34: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈39.547% Holdings of Stapled Securities ≈60.453% H-REIT Distributions HBT Management services Stapling Deed M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) Management Limited (H-REIT Manager) (owns hotels) (HBT Trustee Manager) Lease of Hotels Manageme
Slide 35: Blue Chip Sponsor And Parentage
Blue Chip Sponsor And Parentage Millennium & Copthorne Hotels plc City Developments Limited Listed on the London Stock Exchange with market One of the largest property developers in Singapore capitalization of ~ £1.4 billion (1) with a market capitalization of ~S$9.7 billion (1) Debt to assets ratio
Slide 36: Summary of Leases & Lease Structures
Summary of Leases & Lease Structures Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne Singapore Properties (2) Singapore IPO King’s Hotel: Portfolio 20% of Hotel's revenue + 20% of Hotel’s gross operating profit subject to a Fixed Rent floor of $26.4 m Favourable Lease Structu
Slide 37: CDL-HT Asset Portfolio – Singapore
CDL-HT Asset Portfolio – Singapore Property Orchard Hotel Grand Copthorne M Hotel Copthorne Novotel Orchard Hotel Singapore Waterfront Hotel King’s Hotel Clarke Quay Shopping Arcade Portfolio Number of Rooms 653 574 413 310 401 N/A 2,351 Valuation S$413 M S$315 M S$225 M S$118 M S$267 M S$54 M S$1,3
Slide 38: CDL-HT Asset Portfolio – Overseas
CDL-HT Asset Portfolio – Overseas Rendezvous Novotel Mercure Ibis Mercure Ibis Perth Australian Grand Total Property Hotel Auckland Brisbane Brisbane Brisbane Perth Portfolio Number of Rooms 452 296 194 218 239 192 1,139 1,591 Valuation / NZ$110.0M A$ 68.2M A$ 57.6M A$ 38.8M A$23.0M A$ 187.6M (S$109
Slide 39: Breakdown Of Gross Revenue By Property 1Q '10 Vs 1Q '09
Breakdown Of Gross Revenue By Property 1Q ’10 Vs 1Q ’09 Gross Revenue from H-REIT Properties S$ M 35 ++ 18.2% 18.1% % Change from 1Q ’09 Key: 30 S$26.6M N.M. Mercure Australia Perth Hotels 8% 2.0 25 S$22.5M -0.5% Novotel Clarke Quay 17% 4.6 20 21% 4.6 Rendezvous Hotel Auckland +15.5% 8% 2.1 8% 1.9 4
Slide 40: Increase In CDL-HT Total Property Value
Increase In CDL-HT Total Property Value (1) Valuation of H-REIT Properties S$ M Key: 2,000 +16.0% -9.1% Mercure Perth +47.8% +1.4% 1,741.6M 1,800 Ibis Perth 1,628.8M 2.9% 50 29 Novotel Brisbane 1,501.6M 1.7% 87 1,600 1,481.2M 5.0% 16.9% 74 Mercure/Ibis Brisbane . 275 4.2% 1,400 +30.2% Novotel Clarke
Slide 41: Information On CDL Hospitality Trusts Hotels
Information On CDL Hospitality Trusts Hotels 41
Slide 42: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Hotel Grand Copthorne Novotel M Hotel Copthorne King’s Rendezvous & Shopping Clarke Quay Arcade Waterfront Hotel Hotel Hotel Auckland H ORCHARD ROAD H H H SINGAPORE RIVER H INTEGRATED RESORT SITE CENTRAL H BUSINESS DISTRICT BUS
Slide 43: Hotels In Strategic Locations
Hotels In Strategic Locations Australia Hotels Mercure Ibis Novotel Mercure Brisbane Brisbane Brisbane Ibis Perth Perth Brisbane CBD Perth CBD H H H H H CBD AREA 43
Slide 44: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 653 rooms Located in Orchard Road Large pillar-less ballrooms with extensive conference facilities Caters to both corporate and leisure segments Accolades Hall of Fame Award by Singapore Tatler’s - Best Restaurant 2010 for Hua Ting Restaurant
Slide 45: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 574 rooms Located between CBD and Orchard Road Close to proposed BFC and IR One of the largest conference facilities in Singapore Well positioned for the MICE market Accolades 2009 Singapore Experience Awards by Singapore Touri
Slide 46: M Hotel, Singapore
M Hotel, Singapore Significant Highlights 413 rooms Located in the heart of the financial district Close to proposed BFC and IR Completed refurbishment in 2003 Strong following of business travellers Accolades Wine & Dine Singapore’s Top Restaurants 2009 – Cafe 2000 Wine & Dine Singapo
Slide 47: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights Boutique-style business hotel with 310 rooms Located within close proximity to CBD, convention / exhibition belt and Orchard Road Completed refurbishment in 2004 Strong corporate segment focus and specialty events hotel host Accolades
Slide 48: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 5,984.4 sq m Knight Frank’s valuation S$54.0M Valuation psm (psf) S$9,023 psm (S$838 psf) % of total valuation ~3.6% Leasehold Interest 75 years from Listing Date 48
Slide 49: Rendezvous Hotel Auckland, New Zealand
Rendezvous Hotel Auckland, New Zealand Significant Highlights 452 rooms – largest hotel in Auckland by rooms Freehold Located in the central business district and next to a major conference centre Accolades Green Globe accreditation 2009 Restaurant award for Pacific Restaurant Category Win
Slide 50: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights Prime superior hotel with 401 rooms Leasehold Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub Concluded a S$18.8 million comprehensive refurbishment program to guestrooms,
Slide 51: Novotel, Mercure & Ibis Hotels, Brisbane
Novotel, Mercure & Ibis Hotels, Brisbane Novotel Hotel Novotel Hotel Significant Highlights Novotel Hotel Brisbane 4.5 star accommodation with 296 modern, well-appointed rooms and suites Freehold Located next to Central Station and the CBD, Queen Street Mall and the Riverside boardwalk Compr
Slide 52: Mercure & Ibis Hotels, Perth
Mercure & Ibis Hotels, Perth Mercure Hotel Mercure Hotel Significant Highlights Mercure Hotel Perth 4.0 star accommodation with 239 rooms and suites Freehold Offers six meeting rooms available for up to 350 delegates Situated in Perth’s CBD and within walking distance to the Swan River, shop
Slide 53: Thank You
CDL HOSPITALITY TRUSTS THANK YOU 53
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