CDL Hospitality Trusts

CDL Hospitality Trusts: OCBC note of roaring hotel performance in Feb. Visitor arrivals for Jan-Feb 2012 totaled 2.3m, up 13.9% YoY and higher than the upper limit of the 2.5-10.1% growth implied by the STB’s 2012 goal of 13.5-14.5m visitor arrivals. Hotels across all tiers saw significant growth in RevPAR for Feb, with increases ranging 19.2-26.4% YoY on the back of increased occupancy and average room rates.

Prospects for the tourism sector continue to look bright and the gradual introduction of junkets should have positive spill-over effects on high-end hotels. House maintain BUY rating on CDLHT and $2.00 fair value.