CDL H-Trust – Phillip

•Tourism industry registered spectacular performance in Jan-Nov 2010

•CDL HT ahead of industry average

•Maintained buy, target price $2.38

Tourist arrivals hit another record in Nov’10, registering 960k which is the best record for a November month. Tourist arrivals from Jan-Nov have already crossed the ten million mark at 10,508,000. Cumulative 3-months total showed an improving trend with each successive quarter surpassing the previous quarter. Average RevPar also registered the highest value for the year during the Oct-Nov period. Traditionally, December is another strong tourist month and we are expecting the Oct-Dec period to be the best quarter of 2010. 2010 is a good year for the tourism industry. CDL HT benefitted greatly from being in an industry that directly services the tourism industry. CDL HT has managed to outperform the industry averages in terms of hotel occupancy and RevPar.

CDL HT has performed strongly in the first 9 months of 2010. Revenue improved 35.5% compared to the same period a year ago. Revenue of $88.9 million is approximately the same as FY09 revenue of $91.8 million. Hotel occupancy rate has improved 7 percentage points over FY09 and RevPar is 26.8% higher. Besides the general improvement in the Singapore hotel portfolio, there was also additional contribution from the Australia hotels portfolio which CDL HT acquired in Feb 2010. There might be some concern over the flood in Australia affecting CDL HT Australia hotels portfolio. Revenue contribution is approximately 13% out of which approximately 1% is the variable component. We had also checked with management and understand that operations were not affected.