Japan The Group completed its forward-commitment investment in Splendide VII, a 264-unit PRS asset in Osaka in December 2024. At the end of 2024, the Group owns 40 assets comprising 2,246 units with strong average occupancy rate of 95%, demonstrating the resilience of Japan’s rental market amid fluctuating global economic conditions. The positive performance and strong leasing activity highlight Japan’s multifamily market as a stable, relatively low-risk investment opportunity, reinforcing the Group’s strategic focus on key cities with strong residential rental demand. Australia Construction of the 237-unit Southbank development in Melbourne is 68% complete and on track for Q1 2026 delivery. The 326-unit Toowong development in Brisbane is currently on hold pending stabilisation of construction costs. While costs have shown recent signs of moderation, the Group is closely monitoring the Brisbane market. Across Australia, rents grew 4.8% in 2024. HOSPITALITY The Group’s hotels achieved a global Revenue Per Available Room (RevPAR) growth of 2.6% to $172.5 for FY 2024 (FY 2023: $168.1) mainly due to higher room occupancy and average room rate (ARR) from Australasia, as well as Rest of UK and Europe, with continued growth in RevPAR in Rest of Asia, London and New York markets. In Singapore, the Group’s hotels experienced a 3.4% y-o-y decline in RevPAR primarily due to lower ARR. While major events like the Taylor Swift concerts in Q1 and Formula 1 Singapore Grand Prix in Q3 boosted occupancy, they could not mitigate the shortfall in ARR as travel demand normalised from the 2023 pent-up travel surge. For the Rest of Asia region, RevPAR rose 3.2% y-o-y, led by Taipei’s strong performance, with the Group’s Southeast Asia hotels performing better y-o-y. The gross operating profit (GOP) margin for Asia hotels stands at 41.2%, down 0.2 percentage points y-o-y, mainly due to softer trading in Beijing. Singapore’s GOP margin remained unchanged from FY 2023 at 42.0%, supported by effective cost control in the F&B segment. Australasia’s RevPAR rose 25.3% y-o-y to $122.2 for FY 2024 (FY 2023: $97.5), largely attributable to the addition of the 416-room Sofitel Brisbane Central hotel acquired in December 2023. Excluding this addition, on a likefor-like basis, RevPAR grew 13.4%. With New Zealand’s 2024 international arrivals at 89% of pre-pandemic levels and continued recovery, the RevPAR of Australasia is expected to increase further. In Europe, the Group’s hotels recorded a 6.0% y-o-y increase in RevPAR to $209.0 for FY 2024 (FY 2023: $197.2). London hotels improved RevPAR by 2.4% due to higher occupancy, while Rest of UK and Europe region saw a 17.6% surge in RevPAR, bolstered by the acquisition of Hilton Paris Opéra hotel in May 2024. Demand during the Paris Olympic Games in July and August 2024 contributed to a 12.6% rise in ARR for the Rest of the UK and Europe region. On a like-for-like basis, excluding the Hilton Paris Opéra hotel, Europe RevPAR grew 1.3% y-o-y. Europe’s GOP margin also improved by 1.5 percentage points y-o-y due to better cost management of London hotels and a strong GOP margin at Hilton Paris Opéra hotel. The Group’s US hotels achieved RevPAR of $209.5 in FY 2024, up 3.6% y-o-y (FY 2023: $202.2). This growth was driven by a 7.5% improvement in ARR. New York hotels maintained strong momentum, posting a 2.7% increase in RevPAR, with a 4.3% ARR growth. Conversely, regional US hotels recorded a 2.6% decline in RevPAR due to lower occupancy despite a 6.4% increase in ARR. The GOP margin for US hotels dipped by 0.3 percentage points y-o-y. New York hotels’ GOP margin decreased by 0.7 percentage points due to softer performance at Millennium Hilton New York One UN Plaza and Millennium Downtown New York, which is currently undergoing renovations. However, Millennium Hotel Broadway Times Square improved its GOP margin by 3.1 percentage points due to payroll savings from a union buyout. In line with the Group’s strategy to drive growth and expand its footprint in key gateway cities, the Group made two hotel acquisitions in FY 2024 in Europe and Australasia. The 268-room Hilton Paris Opéra, acquired for €240 million (approximately $350.2 million), performed well in 2024, particularly during the Paris 2024 Olympics, achieving the second highest RevPAR in the Group’s Europe portfolio. ANNUAL REPORT 2024 BUSINESS OVERVIEW 65
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