SINGAPORE (Nov 1): DBS Group Research says CDL Hospitality Trusts’ Singapore operations continue to be impacted by an oversupply of hotel rooms, but believes the REIT offers “outstanding” long-term value.
The research house is keeping CDLHT at “buy” with a lower price target of $1.59, from $1.65 previously.
CDLHT’s revenue per available room (RevPAR) dropped 7.2% to $168 in 3Q, compared to a decline of 3% in the average market. And there is more bad news to come in the near term. In the first 26 days of Oct, RevPAR fell 13.4% y-o-y.