CDL Hospitality Trusts

CDL Hospitality Trusts: OCBC maintains Buy with $2.04 TP. Note that REIT benefits from focus on quality tourists. The SG Tourism Board aims to grow tourism’s GDP contribution from 4% to as much as 8%. It has also recently been emphasising a focus on attracting quality tourists who spend more, as opposed to simply trying to grow the absolute number of tourists. This strategy would likely continue to pay off for high-end hotels, which have outperformed budget hotels in 1Q12 (RevPAR growths of 14.5% and 5.5% YoY respectively). House foresee that for 2012-2015, growth in demand for hotel rooms of 6.4% p.a. will comfortably outstrip supply growth of 3.7% p.a., with high-end hotels facing better supply-side dynamics.