CDL Hospitality Trusts’ (CDLHT) results were within expectations. 4Q17 revenue increased 14.3% to S$55.2m on the back of inorganic contribution from The Lowry Hotel in Manchester and Pullman Hotel Munich. NPI increased 7.8% to S$40.6m. 4Q17 DPU dropped 5.7% to 2.83 S cents.

FY17 DPU came up to 4.3% to 9.22 S cents or 101.8% of our full-year forecast, mainly due to a slight difference with our capital distribution assumption.

Singapore RevPAR increased 1.1% to S$155 in 4Q17, mainly due to a 1.2% increase in ADR. Pending further details from the briefing later, we place our Hold rating and fair value of S$1.555 under review.

Source: OCBC Research - 26 Jan 2018