“[These] should strengthen its long-term Singapore hospitality presence,” says Chua. “We expect capital distributions to rise in the near term with potentially lower operational distributions,” says Chua.
SINGAPORE (Nov 22): As CDL Hospitality Trusts (CDLHT) recently made the headlines for a divestment and forward purchase, market watchers highlight that these constitute a “well-structured asset swap” that will enable the REIT to maintain its hospitality presence.
In a Thursday report, Maybank analyst Chua Su Tye points out how CDLHT’s two recent transactions - its divestment of Novotel Clarke Quay (NCQ) and a forward purchase of the new turnkey hotel, as well as the acquisition of W Sentosa - pave the way forward for the REIT.
