Frasers Hospitality Trust (ACV) Q1 2025 TU earnings summary

Executive summary

• Portfolio RevPAR increased across all key markets in 1Q FY2025, with notable gains in Japan (+18.3%), Australia (+4.4%), Singapore (+4.0%), Malaysia (+3.7%), and the UK (+2.6%).

• Recovery in occupancy rates was a key driver, especially in Japan and Australia, while ADR growth was more moderate or declined in some markets.

• Market conditions improved in most regions, supported by international tourism recovery and strong demand in corporate, group, and leisure segments.

Financial highlights

• Singapore portfolio RevPAR rose 4.0% YoY, driven by a 6.8pp increase in occupancy despite a 5.7% drop in ADR.

• Australia portfolio RevPAR grew 4.4% YoY, mainly from higher occupancy; ADR declined 1.3% YoY.

• UK portfolio RevPAR increased from £124 to £127 YoY, with occupancy up and ADR flat; profitability challenged by higher labor costs.

• Japan’s RevPAR surged 18.3% YoY, led by a 13.6pp occupancy jump, despite a 1.8% ADR decrease.

• Malaysia’s RevPAR up 3.7% YoY, supported by a 6.8% ADR increase and continued demand recovery.

Outlook and guidance

• IMF projects global GDP growth of 3.3% in 2025 and 2026, with risks from protectionism and geopolitical tensions.

• Global tourism has reached 98% of pre-pandemic levels by September 2024, with full recovery expected.

• Inflation is expected to fall in 2025, potentially allowing further interest rate cuts.