Bank of America-Merrill Lynch lifts CDL Hospitality Trusts (J85.SG) target price to $2.30 from $2.20 after rolling over valuation, increasing FY10-FY12 DPU estimates by average 5.0%.

Bank of America-Merrill Lynch expects occupancy rates for CDLH's Singapore hotels to remain high till at least next year, given rising tourist-arrivals, lower-than-expected supply of hotel rooms.

Notes both Singapore casino-resorts have performed better-than-expected, with new tourist attractions coming on stream from 2011, including International Cruise Terminal and Asia’s first River Safari, expected to draw even more visitors: “Positive momentum in the Singapore hotel market will continue to bode well for CDLH.”

Keeps Buy call. REIT flat at $2.06.