CDL Hospitality Trust

CDL Hospitality Trust: Daiwa maintains Buy with $2.30, noting that underlying trends still
positive. Highlight that management expects further upside to earnings and RevPAR for 2011 due to the relatively modest supply of new rooms of 1,223 compared with over 5,000 for 2010….

REIT will also benefit from an increase in room rates that it negotiates with its major corporate customers in 2Q-3Q10 which would kick in from Jan 2011. Management expects the mega MICE events to come through only in 2012, while next major unit-price catalyst would be a DPU-accretive acquisition announcement.