OVERVIEW AND
FINANCIAL REVIEW
OVERVIEW AND FINANCIAL REVIEW
rooms which started in March 2015 is scheduled for
completion by end of 2016. These initiatives reflect the
Managers’ commitment to enhance the competitive
positioning of the assets in order for CDLHT to capitalise
on the medium- and long-term growth potential of the
Singapore hospitality market.
In Japan, the two hotels have undergone conversion
of some of its smoking rooms to non-smoking rooms
to capture the burgeoning demand from non-smoking
guests in early part of 2016. Over in Australia, Novotel
Brisbane is undergoing a refurbishment of its bar while
Mercure Brisbane is refurbishing the area outside its
conference rooms into a unique space to accommodate
various types of exhibitions and trade shows.
PROACTIVE AND DISCIPLINED CAPITAL
MANAGEMENT
We are positioned for acquisitive growth with a gearing
of 36.4%. CDLHT has maintained its rating of BBB- on
the Fitch Issuer Default Rating and has a robust interest
cover of 6.6 times for FY 2015.
During the year, the H-REIT Manager has actively
refinanced existing debt facilities ahead of their
maturities and extended the tenor of its loans so
as to mitigate interest rate volatility. In September
2015, the two floating rate loans that were drawn for
the acquisition of the Japan Hotels were refinanced
with a fixed rate bond and term loan. Separately in
December 2015, the H-REIT Manager also refinanced its
Australia dollar term loan and secured a fresh revolving
credit facility. Post-refinancing, the weighted average
debt to maturity has been extended to 2.8 years and
the proportion of borrowings on fixed interest rates has
increased to 60.2%.
Looking ahead, the Managers will continue to maintain
strong financial discipline to capitalise on any acquisition
opportunities while strengthening the competitiveness
of our properties through proactive asset enhancements.
NOMINATING AND REMUNERATION COMMITTEE
In January 2016, the Boards of the Managers have
each established a new committee, the Nominating
and Remuneration Committee, to assist the Boards in
matters such as the appointment and re-appointment of
Board and Committee members as well as the review
of remuneration packages for the Directors and Key
Management Personnel of the Managers.
APPRECIATION
On behalf of the Board, I would like to thank our
lessees, business partners and service providers for
their continued support and valued contribution to the
Group. To my fellow directors, management and staff
of the Managers and the H-REIT Trustee, I would like
to express my appreciation for your dedication and
commitment to the business. Finally, I want to thank our
Stapled Security Holders for your unwavering support
during the year. I look forward to meeting you at our
annual general meetings on 28 April 2016.
Wong Hong Ren
Chairman
"Looking ahead, the Managers
will continue to maintain strong
financial discipline to capitalise
on any acquisition opportunities
while strengthening the
competitiveness of our
properties through proactive
asset enhancements."
9
Annual Report 2015
