CDL Hospitality Trusts (CDLHT), a group comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust, registered a gross revenue of $26.6 million for 1Q 2010, a strong 18.1% increase from the $22.5 million a year ago.

The group attributed the upswing to the strong hospitality performance which drove a 15.8% increase in RevPAR of the Singapore portfolio, and incremental contribution from recently acquired Australia Hotels (comprising the Novotel Brisbane, Mercure Brisbane, Ibis Brisbane, Mercure Perth and Ibis Perth)

With 1Q 2010 being the first quarter the Australia Hotels are contributing to the group’s revenue, approximately $2 million were contributed by Australia Hotels.

Vincent Yeo, CEO of M&C REIT Management Limited, the Manager of H-REIT, said, “We are pleased to be back on the growth path again, rebounding strongly in 1Q 2010. In line with the recovery in the global and particularly, the regional economies, hotel room night demand was extremely strong. High occupancies of 84% were achieved, considerably exceeding that for 1Q 2009 and matching previous Q1 peaks since the inception of CDLHT. Strong demand also led to Average Daily Rates rebounding year-on-year for the first time since the peak in 2Q 2008.”

“Through our ongoing prudent financial and capital management, CDLHT managed to navigate challenging times with a strong balance sheet that enabled us to exploit a window of opportunity to make our yield-accretive Australian acquisition this February. The acquisition not only provides a high yield but also broadens our revenue stream and increases our minimum rental income threshold, thereby enhancing downside protection. The positive news flow for the Australia economy, bolstered by the resource boom, particularly in the cities of Brisbane and Perth, would underpin the expected substantial rental reversion upside and lead to appreciable capital growth for our Australian hotels over the long term," he said.