CDL Hospitality Trusts - RHB Invest 2024-10-30: A Muted Quarter

• CDL Hospitality Trusts's ’3Q24 results came in slightly below expectations.
  • Singapore hotel performance was weaker than expected for the quarter and outlook remains muted for 4Q24 and 2025.
  • - Read this at SGinvestors.io -
• Its low debt hedge position will allow it to benefit from rate cuts with effects more likely to become prominent in FY25. While valuation is not expensive, we see limited catalysts with signs of revenue per available room (RevPAR) peaking across markets.

Singapore Hotel RevPAR declined 10% y-o-y

• Singapore Hotel RevPAR declined 10% y-o-y during 3Q (below our expectations of flat to low single-digit decline) driven by an 8% drop in room rates and 2ppts fall in occupancy. As a result, NPI (3Q) declined 6% but was up by a marginal 2% year-to-date (9M24).
• - Read this at SGinvestors.io -
• Outlook for 4Q is slightly better with a flattish y-o-y performance expected. However, for 2025, we believe RevPAR will see a slight decline due to the absence of some of the large-scale biennial events held this year.

Acquisition of Hotel Indigo Exeter, UK

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-10-30 SGinvestors.io

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