CDL H-Trust: OCBC maintains Buy and raise TP to $2.04. House raises 2012 RevPAR growth estimates from 5.5% to 7.5% on the basis of strong SG hotel figures year to date and continued positive outlook.
Cite that a senior executive of Millennium & Copthorne (M&C) International expects room rates at M&C’s five Singapore hotels to grow 5% YoY from $219 in 2011, while occupancies could climb by 2-3 ppt from 87%. RevPAR for these hotels have already increased 10% in the first two months of this year. These five hotels are on master leases whereby CDLHT receives rent in the form of 20-30% of the hotel rev and 20% of the hotel gross operating profit, subject to minimum fixed rents.