CDL HOSPITALITY TRUSTS
J85.SI
CDL Hospitality Trusts - AccorHotels To Operate Jumeirah Dhevanafushi
- CDL Hospitality Trusts (CDLHT) has announced the appointment of AccorHotels as the new resort operator for Jumeirah Dhevanafushi in the Maldives, with effect from 1 Sept 2017.
- The asset currently competes at the top end of the Maldives luxury market and has been plagued by a challenging operating environment amongst supply injections and moderating growth from Chinese demand.
- Collectively, CDLHT’s Maldives resorts recorded a YoY RevPAR decline of 16.3% in 2Q17. Under AccorHotels, the asset will initially operate as Dhevanafushi Maldives Luxury Resort and, following enhancements in late 2018, will be repositioned to join the collection of Raffles Hotels and Resorts.
- We believe the change in the operator and asset enhancements will offer a chance for an improvement in its operational performance. Note that CDLHT is currently trading at a FY17F yield of 5.6% and a FY18F yield of 6.3%.
- Maintain HOLD with a fair value of S$1.525.
Deborah Ong
OCBC Investment
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http://www.ocbcresearch.com/
2017-08-21
OCBC Investment
SGX Stock
Analyst Report
1.525
Same
1.525
