CDL Hospitality Trusts - Maybank Research 2025-01-30: Look Beyond The Soft Patch

• Investor meeting with CDL Hospitality Trusts's management suggests inorganic growth from recent M&A and development projects, and potential rate cuts should support bottom line in FY25. Medium-term growth will be led by visitor arrivals.
• - Read this at SGinvestors.io -
• Normalisation of RevPAR, higher operating and borrowing expenses, and stabilisation of newly developed assets in the UK impacted distribution. Financial metrics were relatively stable.

Normalising demand; competitive supply

• 2H24 revenue and NPI of S$132.9m and S$68.7m was -3.9% and -9.0% y-o-y, respectively.
  • Singapore RevPAR fell 10.1% y-o-y in 2H, led by a 4%pt decline in occupancy and 5.7% decline in room rates. This was led by demand-supply imbalance and non-renewal of a group contract for W Hotel.
  • - Read this at SGinvestors.io -
• Gearing rose to 40.7% (3Q24 38.8%) due to recent M&As while coverage fell to 2.30x (3Q24 2.55x). Manager announced a S$30m refurbishment for the W Hotel this year.

Meeting takeaways

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Previous report by Maybank:
2024-10-30 CDL Hospitality Trusts - Normalising Growth; Upside From Rate Cuts.

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 Dividend Payout Dates & Corporate Actions,
CDL Hospitality Trusts News