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YEAR IN REVIEW
Hilton Cambridge City Centre also underwent a number of product uplifts after CDLHT’s acquisition in October 2015
to maximise the asset’s potential. A new gym, LivingWell Fitness, as well as the Executive Lounge were introduced at
the end of 2016. The entrance canopy of the hotel was also replaced during the year, refreshing the hotel’s façade after
the re-branding exercise. In 2017, the restaurant and lobby will continue to be enhanced, including the launch of a new
restaurant concept.
The proactive implementation of asset enhancement initiatives is expected to enhance CDLHT’s product offerings as well
as the long-term revenue generating ability of its properties.
CAPITAL STRUCTURE AND RISK MANAGEMENT
As at 31 December 2016, CDLHT’s total borrowings stood at S$932.6 million with a gearing ratio of 36.8%. CDLHT is rated
BBB- on the Fitch Issuer Default Rating and has an interest cover of 6.2 times for FY 2016.
To optimise risk-adjusted returns to Stapled Security Holders, CDLHT endeavours to balance an appropriate mix of debt
and equity in financing acquisitions and adopts proactive interest rate management strategies by maintaining a higher
percentage of fixed rate borrowings and through the use of interest rate swaps, where appropriate.
In August 2016, the floating rate bridge loan amounting to £64.6 million (S$115.2 million) drawn for the acquisition of the
UK Hotel and a floating rate medium term note of S$83.6 million were refinanced with two 5-year floating rate term loans.
As a result of the refinancing, the weighted average debt to maturity has been extended to 3.0 years while floating rate
risk remains well managed with the proportion of borrowings on fixed interest rates at 61.0% as at 31 December 2016.
The H-REIT Group has in place a S$1.0 billion multi-currency medium term note programme of which S$880.0 million
remains unutilised and a S$250.0 million multi-currency revolving credit facility of which S$88.5 million is unutilised.
On top of that, CDLHT also has a S$300.0 million uncommitted multi-currency bridge facility which is available for
acquisitions when opportunities arise. CDLHT will continue to enhance financial flexibility by maintaining diversified
sources of funding.
STAPLED SECURITY PRICE STATISTICS
CDLHT closed at a price of S$1.340 per Stapled Security as at 31 December 2016. Since IPO, the Stapled Security’s price
has appreciated by 61.4%. In year 2016, the Stapled Security’s price increased slightly by 1.1% from S$1.325, the closing
price as at 31 December 2015.
Assuming a unitholder held the Stapled Securities from IPO till 31 December 2016 and had the distributions been reinvested
in the Stapled Securities of CDLHT on the day they were paid out, total return to the unitholder would have been 207.3%.
On the same basis, the total return of the Stapled Securities would have been 8.7% in year 2016.
OVERVIEW AND FINANCIAL REVIEW
Porte Cochère, Hilton Cambridge City Centre
Executive Lounge, Hilton Cambridge City Centre
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