Oversupply concerns in the Australian hospitality spaces market has put a damper over Frasers Hospitality Trust’s (FHT’s) outlook, as it reported a distribution per unit (DPU) 0.9846 Singapore cents for its 2Q 2019.
This is a fall of 11.5% year-on-year, and in line with declines in gross revenue and net property income, which slid by 7.6% and 9.1% respectively over the same period.
FHT has attributed the declines mainly to the weaker performance of its Australia, Malaysia and Japan portfolios.
“Our properties in Sydney have been affected by the challenging trading environment in the city, and softer group and leisure demand while The Westin Kuala Lumpur reported lower room and F&B revenue as corporate demand has remained weak for some time”, said Eu Chin Fen, CEO of FHT’s managers.
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