Frasers Hospitality Trust (ACV) Q3 2024 TU earnings summary

Executive summary

• Portfolio performance in 3Q FY2024 was mixed, with some markets showing strong recovery while others faced headwinds from increased competition and easing pent-up demand.

• Major city events and international tourism recovery supported RevPAR growth in Australia, Japan, and Malaysia.

• UK and Singapore portfolios experienced softer performance due to market pressures and increased supply.

Financial highlights

• Singapore portfolio saw a 6.0 pp YoY decline in occupancy and a 7.2% YoY drop in RevPAR for 9M FY2024, despite a 0.9% YoY increase in ADR.

• Australia portfolio achieved 5.8% YoY RevPAR growth in 9M FY2024, with occupancy gains offsetting a 1.0% YoY ADR decline.

• UK portfolio RevPAR declined 2.4% YoY in 9M FY2024, with ADR down 3.0% YoY.

• Japan’s ANA Crowne Plaza Kobe RevPAR rose 13.5% YoY in 9M FY2024, driven by occupancy and ADR growth.

• The Westin Kuala Lumpur posted a 21.5% YoY RevPAR increase in 9M FY2024, with ADR up 12.1%.

• Maritim Hotel Dresden continued its recovery, supported by higher ADR and domestic travel.

Outlook and guidance

• UNWTO expects global tourism to fully recover to pre-pandemic levels in 2024, with 2% growth above 2019.

• IMF projects global GDP growth of 3.2% in 2024 and 3.3% in 2025.

• Risks include geopolitical tensions, FX volatility, and interest rate uncertainty, though markets are optimistic about potential rate cuts in 2H 2024.

• China’s outbound travel recovery and enhanced air connectivity are expected to further boost international tourism.