CDL Hospitality Trusts - OCBC Investment 2020-02-19: Beneficiary Of Relief Package

CDL HOSPITALITY TRUSTS (SGX:J85) | SGinvestors.io CDL HOSPITALITY TRUSTS (SGX:J85)

CDL Hospitality Trusts - Beneficiary Of Relief Package

  • Relief package was announced to support hospitality sector.
  • To provide job and cash-flow support.
  • Likely to carry out more AEIs.



S$4b Stabilisation and Support Package to support the economy

  • The government announced a S$4b Stabilisation and Support Package during the Singapore Budget 2020 yesterday to help businesses cope with the near-term economic headwinds from the COVID-19 outbreak. It was highlighted in the speech that additional support will be provided to the most directly and adversely impacted sectors, namely the tourism, aviation, retail, food services and point-to-point transport services.


Provision of tax rebates and a temporary bridging loan programme

  • For businesses in the hospitality sector, support measures mainly come in the form of a property tax rebate. A property tax rebate of 30% will be granted for the accommodation and function room components of licensed hotels and serviced apartments, as well as prescribed MICE venues, for year 2020.
  • In addition, a new temporary bridging loan programme will be introduced for a year to alleviate the short-term cash flow and operating costs pressures of tourism sector enterprises (e.g. licensed hotel operators, attraction operators and licensed travel agents etc.). The loan limit per company will be $1m with the government taking on 80% of the risk of the loan and an interest rate capped at 5%.
  • Moreover, the government will enhance a series of tax treatments under corporate tax system for a year to allow companies to write-down their investments in PPE, and renovation and refurbishment at a faster rate.


CDLHT will benefit from additional support measures






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2020-02-19
SGX Stock Analyst Report BUY UPGRADE HOLD 1.620 SAME 1.620



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