HPL

HPL has a portfolio of international hotel assets which stands to benefit from the recovery in global tourism and the opening of 2 IRs in S'pore. HPL’s Hilton Hotel, Four Seasons Hotel, Forum the Shopping Mall & HPL House form a sizeable enclave along the prime Orchard R. Land for development along this belt is scarce and HPL’s properties together occupy a sprawling 220,000 sq ft of land. Its 3 hotels in S'pore (totalling 1,083 rooms) a/c for about 40% of its FY09 EBIT from hotel operations.

HPL also has investments in three residential projects, enabling it to ride Singapore’s robust property market. With an attributable GFA of 1.2m sq ft and a GDV of about $2b or $3.95/share, our property analyst expect these projects will give a huge fillip to earnings from FY11 to FY14 when fully launched. If its prime properties along Orchard Road are redeveloped, we believe its RNAV could surge to $5.34/share, more than 2x its current share price. TP of $3.33.