CDL Hospitality Trust's property income to grow 6.26% to $161.3m in 2018
The return of corporate spending and higher visitor arrivals are likely to drive growth in its Singapore portfolio.
OCBC Investment Research reported a forecast of CDL Hospitality Trust (CDLHT)’s net property income (NPI), rising by 6.26% YoY from $151.8m in 2017 to $161.3m in 2018.
According to OCBC, the return of corporate spending, higher visitor arrivals, including the tapering of additional room supply, will boost Singapore operations this year.
Singapore Business Review also previously reported that CDLHT’s NPI went up by 7.8% to $40.62 in Q4 last year, which was caused by an improved performance from The Lowry Hotel and Pullman Hotel Munich.
Further, CDLHT’s room revenue growth rate in its Singapore assets is expected to grow by 8%, and mid-tier hotels are projected to perform better than luxury tiered hotels in the first half of the year.
Gross revenue is also forecasted to increase from $204.3m in 2017 to $216.1m this year.