Company Name: CDL HOSPITALITY TRUSTS
| Research House: OCBC | Price Call: BUY | Target Price: 2.00 |
CDL Hospitality Trusts (CDLT.SI), which owns hotels, is well positioned to benefit from growing tourism in Singapore as well as stronger revenue for high-end hotels, OCBC Investment Research said.
It maintained its buy rating and a target price of $2.00 for CDL Hospitality. Shares in the units were up 1.4% at $1.785, and have gained 15.5% this year.
“Many of the visitors from developing countries are not budget travelers,” said OCBC, highlighting that the revenue per available room (RevPAR) for high-end hotels in Singapore outperformed budget hotels in January.
Overall, RevPAR for Singapore hotels rose 11.7% in January from a year ago, while visitor arrivals grew 13.4 percent, data from the Singapore Tourism Board shows.
“With the majority of its revenue coming from high-end Singapore hotels, CDL Hospitality Trusts will continue to be a beneficiary of the blossoming tourism industry,” OCBC said.
No comments:
Post a Comment