- CDL Hospitality Trusts (SGX:J85)’s 3Q23 NPI slightly outpaced estimates. Its Singapore hotel segment continues to recover strongly, with four of its six hotels recording new highs in revenue per available room (RevPAR) in 3Q – and we expect this momentum to be sustained until 1H24.
- - Read this at SGinvestors.io -
3Q23 and 9M23 NPI rose by 23% y-o-y.
- This was backed by strong growth from Singapore, Italy, Germany and Japan, with seven of its hotels recording their highest RevPAR in 3Q23. NPI margin for 3Q23 improved to 55.7% (1.7ppt y-o-y, 4ppt q-o-q), i.e. operating leverage kicking in.
- CDL Hospitality Trusts's management guided for a reduction in its Singapore portfolio’s utility expenses next year, as the contracted rates are ~30% below current spot rates.
- - Read this at SGinvestors.io -
- On valuation, we expect CDL Hospitality Trusts's Singapore hotel portfolio value to edge up slightly, based on recent transactions. This should more than offset the FX weakness from its overseas assets.
Focus likely to shift more towards a more occupancy-based strategy
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-10-30
Read also RHB's most recent report:
2024-03-14 CDL Hospitality Trusts - Recovery Momentum Intact; BUY.
Price targets by other brokers at CDL Hospitality Trusts Target Prices.
Listing of research reports at CDL Hospitality Trusts Analyst Reports.
Relevant links:
CDL Hospitality Trusts Share Price History,
CDL Hospitality Trusts Announcements,
CDL Hospitality Trusts Dividends & Corporate Actions,
CDL Hospitality Trusts News Articles
