CIMB cuts CDL Hospitality target price

CIMB Research kept its outperform rating on Singapore’s CDL Hospitality Trusts (CDLT.SI) but cut its target price to $1.75 from $1.81.

 

CIMB has cut its estimates for CDL Hospitality’s revenue per average room (revpar) to reflect lower visitor growth and hotel occupancy, as well as flat room rates for fiscal 2012.

 

However, the brokerage still remains positive on the trust.

 

“We deem the local tourism scene different from what it was during the last crisis, with more positives than before,” it said, adding that Singapore’s plan to add more tourist attractions will continue to draw visitors.

 

Furthermore, Singapore’s tourism is more dependent on the region’s economic growth, thus CIMB expects visitor arrivals and revpar to hold up even as Western economies slow.

 

At 9:18 a.m., shares of CDL Hospitality were 0.34% lower at $1.46, and have lost nearly 30% since the start of the year.