CDL Hospitality Trusts

CDL Hospitality Trusts: Garden by the Bay, officially opened last Thur and the new Marina Bay Cruise Centre will solidify Marina Bay as a key tourist cluster to complement Sentosa. STB has a target of 17m visitor arrivals by 2015, implying a growth rate of 6.6% p.a. from 2011. OCBC note that even with a ‘leakage’ from the conversion of visitor arrivals into hotel rooms nights because cruise passengers are much less likely to book hotel rooms, estimate that hotel room demand will grow by an enviable 6.4% p.a., easily outstripping the growth in hotel rooms, which house estimate at 3.7% p.a. The 6.4% estimate conservatively assumes no change in hotel room nights per hotel guest. House maintain a BUY rating on CDLHT and fair value of $2.04.