CIMB lifts CDL Hospitality Trusts (J85.SG) target price to $2.30 from $2.04 to factor in contributions from potential acquisitions in near term, plus lower cost of debt, says Dow Jones.

CIMB says Studio M hotel, owned by sponsor Millennium & Copthorne (MLC.LN), likely to be injected into REIT. Notes 365-room hotel’s occupancy has already outperformed market average despite opening only in April.

“In view of the tourism boom in Singapore and Studio M’s performance thus far, we believe the gestation period for this asset is likely to be much shorter than usual,” adds CIMB.

Research house says CDL’s cost of debt expected to eventually head down to 3.5% from 4.0% in 2Q10 after recent note program to refinance $350 million. Keeps Outperform call. Price +2.9% at $2.10.