Analysts from RHB Group Research and Maybank Kim Eng remain cautious on CDL Hospitality Trusts (CDLHT) after it released its 1QFY2021 ended March business update on April 29.

RHB analyst Vijay Natarajan kept his ‘neutral’ rating with an unchanged target price of $1.25.  Similarly, Maybank Kim Eng analyst Chua Su Tye kept his ‘hold’ rating and target price of $1.30.

Natarajan calls CDLHT’s performance for the 1QFY2021 "mixed", noting that net property income (NPI) for its Singapore portfolio fell 35% y-o-y on lower revenue per available room resulting from four out of its six hotels being utilised for government bookings and master leases. On-going border restrictions and the recent rise in community infections prompt Natarajan's view that any meaningful recovery will potentially be delayed to the following year.

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