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A bountiful harvest

Full year 2022 results

Full year FY22 DPU at 5.63 Scts exceeds estimates

• CDLHT reported 2H22 topline gross revenue of S$130.7 (+42.9%) and net property income of S$72.8 (+48.1%)
• This was led by broad-based growth across all markets spurred by leisure demand and the return of corporate groups, with organic contribution concentrated within the Singapore and UK portfolios. 
• Full year revenue at S$229.4m (+45.4%) and NPI at S$123.7 (+43.7%), exceeded our estimates at S$181.5m and S$110.9m respectively.
• Correspondingly, total income to be distributed (post capital distribution of S$6.4m, partially netted by the retention of income of S$7.0) was S$69.713 or a full year DPS of 5.63 Scts per share, exceeding our full year DPS estimate at 5.41 Scts. 

Stronger flow through to the bottom line Broad based recovery across all geographical markets

• In the latest quarter ending Dec&rsquo 22, 13 out of CDLHT&rsquo s 17 hotel assets has surpassed 4Q19 levels. 
• The stronger recovery in room rates and topline revenue has seen a higher than proportional flow through to the bottom line. 
• 4Q22 NPI for the quarter at S$41.1m continued to see sequential improvement, in comparison to 2Q22 / 3Q22 NPI at S$26.8m / S$31.6m respectively.
• Demand continues to be broad based, with leisure fronting the recovery. 
• The return of MICE events has seen the return of corporate groups more prominently in selected markets, including Singapore, Germany and Italy 
• On a full year basis, NPI performance has closed to or more than doubled in 4 key markets, including Singapore (+96% y-o-y), Japan (+60% y-o-y, from a low base), UK (+75% y-o-y), and Italy (+113% y-o-y)

Balance sheet &ndash remained stable 

• The overall valuation of the portfolio increased by 6.3% or S$166.3m y-o-y due to higher valuations recorded for the Singapore portfolio or c.4.8% on a same asset basis. This has resulted in NAV increasing by c.9% to S$1.44/unit. As a result, gearing declined to c.36.6% on the back of higher valuations 
• Interest cost increased to 3.5% as of Dec&rsquo 22 (vs c.2.7% in FY22) due to higher interest rates from refinancing and floating portion of the loans. Looking ahead, average cost of debt is expected to increase to c.4.0% in FY23, which we have priced into our estimates.
• ICR ratio was stable at 3.7x and should improve in FY23 on the back of stronger cashflows in anticipation of a stronger recovery.  

Outlook &ndash operational performance remains on an uptrend. 

• Management remained optimistic on the outlook of its overall portfolio with China&rsquo s outbound trajectory with the gradual resumption of flights schedules the key catalyst for stronger numbers to drive operational numbers higher. Markets that should benefit from higher travel demand (leisure + corporate) include Singapore, Australia and Maldives. In addition, corporate demand is expected to continue to improve with rates expected to head higher on the back of higher expected frequency. 

Estimates and TP changes

We have refreshed our estimates to reflect the outperformance of CDLHT&rsquo s&rsquo Singapore hotel portfolio which outperformed by c.10% above our estimates. Overall, we maintain our growth trajectory of 15% in RevPAR in 2023, and 10% in 2024. Our DPU estimates are raised by 5%-9%, TP is raised to S$1.60. 

 

CDL Hospitality Trusts&rsquo : J85 +1.48% (CDLHT) distribution per stapled security (DPS) rose 17.3 per cent to S$0.0359 for the second half of 2022 ended Dec 31, from S$0.0306 a year earlier.

 

Managers of the stapled group on Monday (Jan 30) observed positive momentum in rate growth across all its portfolio markets due to continued global travel recovery during the half-year period. The return of corporate groups and citywide events reinforced the recovery initially spurred by leisure demand, they added. 

 

Gross revenue for the half year rose 42.9 per cent to S$130.7 million from S$91.5 million, while net property income (NPI) increased 48.1 per cent to S$72.8 million from S$49.1 million. 

 

The rise in NPI was mainly attributed to the Singapore portfolio, which saw an NPI increase of SS$27.4 million year on year. 

 

CDLHT&rsquo s fourth quarter revenue per available room (RevPAR) for Singapore hotels, which includes W Singapore Sentosa Cove and Grand Copthorne Waterfront Hotel, grew 105.2 per cent to S$220 from S$107. This brought the H2 RevPAR to S$209, a 129.3 per cent rise from S$91 a year earlier.

 

Despite the absence of inbound visitors from China, Singapore&rsquo s biggest pre-pandemic inbound market, marquee events such as the Singapore Grand Prix in September 2022 drove the tourism rebound.

 

On the other hand, the NPI for its New Zealand Hotel and Maldives Resorts declined by S$11.3 million over H2, while RevPAR for New Zealand also decreased 46.7 per cent to NZ$98 (S$84) from NZ$185 a year ago as long-haul flight capacity remained limited to only certain types travellers. 

 

Nonetheless, the managers expect the upcoming 2023 Fifa Women&rsquo s World Cup jointly hosted by Australia and New Zealand in Q3 2023 to boost international tourism numbers to the region.

 

Meanwhile, H2 RevPAR for the Maldives also decreased 5.8 per cent to US$263 from US$280 the year before, impacted by weaker top-line performance in Q4 amid the reopening of competitor resorts, as well as rising inflationary costs. 

 

With China&rsquo s border reopening, the managers noted that the return of the largest pre-pandemic visitor source market to the Maldives should mitigate the impact of the new supply of resorts, as well as the reopening of other resort destinations. 

 

CDLHT&rsquo s Japan hotels saw NPI increase by S$700,000 year on year to S$1 million for H2 2022, on the lifting of pandemic-related entry restrictions last October. 

 

DPS for FY2022 was S$0.0563, up 31.9 per cent from S$0.0427 a year earlier. 

 

Gross revenue for the full year was S$229.4 million, up 45.4 per cent from S$157.7 million last year. NPI rose 43.7 per cent to S$123.7 million from S$86.1 million.

 

As at Dec 31, CDLHT&rsquo s total portfolio value increased by 6.2 per cent or S$163.7 million year on year to S$2.8 billion, mainly due to the Singapore portfolio, the inclusion of Hotel Brooklyn and construction progress of The Castings.

 

Vincent Yeo, chief executive officer of CDLHT&rsquo s managers, said that amid a gloomy economic environment, exacerbated by higher borrowing costs and inflationary cost pressures, it is gratifying to see travel demand continuing its robust recovery trajectory.

 

&ldquo China&rsquo s reopening should boost international tourism in 2023 and beyond, helping to mitigate the inflationary cost challenges and higher interest rate environment,&rdquo Yeo added.

A UNIT under CDL Hospitality Trusts : J85 +0.81% (CDLHT) has inked a new 10-year lease agreement with a unit of Banyan Tree Holdings : B58 0% for the Angsana Velavaru resort in the Maldives.

 

The existing lease in place expires on Jan 31, 2023, CDLHT said in a Wednesday (Dec 14) bourse filing. The rental formula and management fee terms under the new lease are the same as the existing one entered into in January 2013.

 

Under the agreement, the lessor will be entitled to receive rent payments equivalent to the resort&rsquo s gross operating profit less management fees retained by the lessee, subject to a minimum rent. The lessee will pay a top-up amount to make up for any shortfall in rent below the minimum rent for each year.

 

&ldquo The lease structure provides downside protection for CDLHT and incentivises the lessee to maximise gross operating profit while allowing CDLHT to enjoy the potential upside,&rdquo the trust said in its filing.

INTERNATIONAL tourist arrivals to Singapore rose for a ninth straight month in October and this is expected to continue to grow at a gradual pace in the coming months.

 

All hospitality trusts with Singapore assets observed significant improvements in occupancy and RevPAR (revenue per available room) in the last quarter, driven by the return of large-scale events and the Mice (meetings, incentives, conventions and exhibitions) industry, alongside pent-up demand for overseas travels.

 

CapitaLand Ascott Trust : HMN -0.52% updated that revenue and gross profit for Q3 2022 were higher year on year (yoy). Gross profit rose to approximately 90 per cent of Q3 2019 pro forma levels due to contributions from several new properties and full quarter contribution from Wildwood Lubbock, as well as stronger operating performance of the existing portfolio.

 

Even without these contributions, gross profit rose 70 per cent yoy. Portfolio RevPAU rose 88 per cent yoy to S$132 with Australia and USA continuing to perform at close to pre-Covid levels. The trust&rsquo s stable income portfolio, which contributes 56 per cent of Q3 2022 gross profits, recorded improvements across its master leases, longer-stay properties, and management contracts with minimum guaranteed income (MCMGI).

 

CDL Hospitality Trusts : J85 +1.61% updated that its net property income (NPI) for 9M 2022 improved 43.7 per cent to S$82.6 million, with the most significant contributors being Singapore and Australia properties which collectively increased by S$15.4 million yoy for Q3 2022. In Q3 2022, RevPAR for 12 hotels (out of 18) exceeded Q3 2019 levels.

 

In its Singapore hotels, occupancy rate has improved from 72.3 per cent in Q3 2021 to 88.1 per cent in Q3 2022, driven by the recovery of Singapore&rsquo s Mice industry and events. The trust remains positive in the outlook for demand recovery in Singapore as visitor arrivals and events continue to pick up, and it also believes there is potential for pent-up demand to take place in Japan following the reopening of borders in October 2022.

 

Far East Hospitality Trust : Q5T 0% recorded that its Q3 2022 gross revenue increased 2.0 per cent yoy, led by growth from the hotel segment which increased 4.7 per cent. Income available for distribution grew 12.0 per cent yoy from higher NPI and interest income.

 

During Q3 2022, RevPAR and average daily rate for its hotels continued to improve (101.9 per cent and 107.6 per cent yoy, respectively) and surpassing that of the first two quarters of 2022. For its services residences segment, RevPAR and average daily date grew 66.7 per cent and 32.4 per cent yoy in the quarter, respectively, achieving two consecutive quarters of growth this year.

 

Frasers Hospitality Trust : ACV +1.16% reported full year results for FY2022. Gross revenue improved 12.1 per cent yoy due to relaxed travel restrictions and higher vaccination rates. NPI and income available for distribution increased 20.7 per cent and 66.3 per cent yoy, respectively, from lower property tax expenses arising from lower assessed annual values of Singapore properties and recovery of receivables previously impaired.

 

The improvement across its portfolio lifted its distribution per stapled security (DPS) in FY2022 by 66.4 per cent yoy to 1.6355 cents. Improvements in RevPAR were recorded across most of its operating markets. In Singapore, RevPAR grew 75.7 per cent yoy in H2 2022 from the resumption of events and tourist arrivals.

WITH the return of leisure activities and travel, CDL Hospitality Trusts : J85 +3.7% (CDLHT) posted a 54.4 per cent increase in net property income (NPI) in Q3 2022 ended Sep 30, to S$31.6 million, from $20.5 million a year ago.

 

Gross revenue saw a 46.4 per cent increase this quarter to S$58.5 million, from S$40 million a year ago. The improvements reflect the robust growth in global travel as border restrictions eased post-pandemic, said CDLHT in a business update on Friday (Oct 28).

 

The stapled hospitality group also recorded sharp increases in its revenue per available room (RevPAR) across the majority of its portfolio, with its hotels in Singapore recording the highest RevPAR for a single month in September and for the reporting quarter. 

 

RevPAR in Q3 for its six Singapore hotels stood at S$199. This was more than double at a 163.6 per cent increase from Q3 2021&rsquo s S$76. CLDHT attributed this to a return of citywide events in this quarter, such as the Food and Hotel Asia 2022 show and 2022 Singapore Grand Prix. 

 

&ldquo While demand largely comprised individual leisure and corporate travellers in the early part of the quarter, the hotels benefited from a strong return in events in September,&rdquo it said. 

 

The group highlighted that its Singapore and Australia portfolios were main contributors to CDLHT&rsquo s Q3 performance &ndash   more than half of its gross revenue, at S$31.8 million, was contributed by its hotels in Singapore, while its properties in Singapore and Australia accounted for most of its increased NPI, rising by S$15.4 million from a year ago. 

 

This increase in NPI was, however, offset by lower NPI from its property in New Zealand, which declined by S$4.7 million year on year, following its exit from the government isolation programme. 

 

Its hotel portfolio in Japan, Italy and the United Kingdom also rose in NPI as travel returned, while its Germany portfolio slipped due to a clawback by its lessee as well as higher maintenance and property expenses. 

 

CDLHT&rsquo s debt maturity stood at around 1.7 years as at Sep 30, 2022. An existing £ 50 million (S$81.5 million) term loan facility was refinanced during Q3, and documentation is underway to complete the refinancing for its remaining S$193 million debt, which matures at the end of 2022, it said. 

CDL Hospitality Trusts' distribution per stapled security (DPS) rose by 67.2 per cent to 2.04 cents for its first half ended June 30, from 1.22 cents a year ago, as leisure demand accelerated incrementally in the second quarter.

 

The strong demand was seen in hotels in Singapore and Britain, as well as its resorts in the Maldives, where their net property income (NPI) collectively grew by $16.9 million in the half year, the stapled group' s manager said in a bourse filing on Friday (July 29).

 

The manager said a firm recovery is now evident, except for a few regions in the group' s portfolio. The Australia and New Zealand portfolio collectively recorded a $4.8 million decline in NPI for the half year.

 

Gross revenue was up 49 per cent year on year in the first half to $98.6 million from $66.2 million, while NPI grew 37.8 per cent to $51 million, from $39.6 million.

 

NPI growth for the second quarter itself came in at 55.4 per cent as income jumped to $26.8 million in the period, from $17.2 million over the same period last year.

 

Apart from the hotels and resorts, the manager said NPI growth was also contributed by Claymore Connect, a retail property under the group' s portfolio.

 

Its NPI grew $1 million in the half year due to continued tenant recovery and the normalisation of Singapore' s retail trade, it highlighted.

 

Stapled securities of CDL Hospitality Trusts closed at $1.35 on Thursday, up three cents or 2.3 per cent before the announcement.

 

CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business Trust.

 

As travel restrictions are lifted, analysts are becoming increasingly bullish on the outlook for hospitality trusts. DBS Group Research believes that the worst of the lockdowns are done and dusted. &ldquo The return of leisure travel has led to hoteliers&rsquo hiking room rates. Leisure demand is poised for a meaningful upturn come 2H2022 as governments across the world ease Covid tests and quarantine requirements for vaccinated travellers,&rdquo a May DBS report points out.

 

For instance, RevPAR rose by 34% y-o-y in 1Q2022 in many countries, DBS observes. Its analysts believe that the uptick in Omicron cases globally that is being reported currently is unlikely to derail the recovery trajectory.

 

&ldquo We continue to expect more upside to RevPAR from 2Q22 onwards. The forward booking pace has improved and hoteliers are more confident in hiking room rates,&rdquo DBS says.

 

DBS Research says that security-holders of these hospitality trusts are getting value for money in that the valuation implies these assets are priced below replacement costs. Investment properties including hotels and lodging assets are valued based on their rental income and outlook. The pandemic and the lockdowns caused a dip in these metrics. The net asset value of CDL Hospitality Trusts (CDLHT) fell from $1.53 as at Dec 31, 2019, to $1.33 as at Dec 31, 2021, after hitting a low of $1.32 as at Dec 31, 2020.

 

Since the announcement of FHT&rsquo s privatisation, DBS Research has doubled down on its CDLHT recommendation based on replacement costs. &ldquo CDLHT should see positive investor interest following news of FHT&rsquo s proposal to privatise. CDLHT currently trades at an implied average price per room of $0.6 million for its Singapore hotels, which is below the replacement cost of $0.75 million per room in Singapore. CDLHT&rsquo s replacement cost per room has likely risen above $0.75 million per room implying an even deeper discount at the current stock price. CDLHT is also a prime beneficiary of Singapore&rsquo s reopening,&rdquo DBS says.

 

Unfortunately, CDLHT&rsquo s security-holders may also have to support the trust in the event that CDL divests its M& C hotels into CDLHT.

 

The DBS analysts are particularly bullish on ARA US Hospitality Trust. A word of caution though. If the US enters a recession, travel and hotel stays could be negatively impacted.

 

The portfolio of Ascott Residence Trust (ART) was more resilient during Covid-19. Its NAV as at end of December 2019 was $1.22 compared to its NAV of $1.17 as at end December 2021. Although ART has a lower portion of fixed rents than either CDLHT or Far East Hospitality Trust (FEHT), it owns 54 serviced residences where guests stay longer compared to hotels, 14 rental housing using properties mainly in Japan, and seven purpose-built student accommodation (PBSA). This means ART has greater income stability compared to other hospitality trusts.

 

&ldquo The main focus is to look for a way to reconstitute the portfolio to have more income stability. The key driver was to look into the student accommodation and rental housing as a class. In the last year, we have invested in 11 properties to expand into this longer stay accommodation,&rdquo says Beh Siew Kim, CEO of ART&rsquo s manager.

 

In FY2021, ART divested two properties at 5% yield. Along with three properties divested in FY2020 at yields of 2% and 3%, and with most at 50% above book value, ART reaped $580 million in proceeds including $225 million in net gains. During the same period, ART has invested $700 million in eight PBSA properties in the US at higher yields, taking long stay accommodation up to 16% of portfolio value. Beh says ART plans for the long-stay accommodation to comprise up to 30% of ART&rsquo s portfolio.

 

In March, FEHT divested Central Square to City Developments for $313.2 million, 70.8% above the original purchase price of $188.3 million in 2012. FEHT&rsquo s NAV had fallen from a high of 87.2 cents pre-Covid-19 to a low of 79 cents as at Dec 31, 2020. NAV has rebounded to 83.2 cents as at Dec 31, 2021.

 

Nonetheless, JP Morgan has a hold recommendation on FEHT. &ldquo What we disliked about FEHT was that 1Q2022 occupancy fell 8.4pts to 67.7%, due to the cessation of government contracts for isolation use in three hotels,&rdquo JP Morgan says. Despite a 15.7% rise in RevPAR in 1Q2022, improvements in room rates, and higher forecast distributions per stapled security (DPS) in FY2022 and 2023, JP Morgan has kept its hold recommendation.

 

FEHT is trading at the highest discount to NAV, at 0.78 times its NAV. And, as the divestment of Central Square shows, the market value of its properties could be a lot higher than its book value.

 

Despite DBS analysts&rsquo bullishness, investors should be cognisant of inflationary pressures on hospitality trusts. Rising interest rates and higher costs are likely to impact distributions while the trading price is likely to come under pressure from rising risk-free rates.

With the easing of Covid-19 travel restrictions driving higher occupancies, CDL Hospitality Trusts (CDLHT) recorded a 22.5 per cent year-on-year increase in net property income (NPI) to $24.2 million for the first quarter of 2022.

 

Gross revenue rose 36.1 per cent to $46.2 million over the same period, said the hospitality trust in a bourse filing early on Friday (April 29).

 

CDLHT, which comprises both CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business Trust stapled as one entity, also saw growth in its revenue per available room (RevPAR) across majority of its portfolio. RevPAR is a a metric used in the hospitality industry to measure hotel performance.

 

Its properties in Singapore and Maldives were the main contributors to improved Q1 perfomance.

 

RevPAR for hotels in Singapore increased by 40.7 per cent year on year, and its NPI improved by 24 per cent.

 

As for the Maldives, its resorts posted a RevPAR growth of 65.6 per cent year on year. NPI also improved 75 per cent as tourist arrivals went up by 44.5 per cent from the beginning of this year till March.

 

However, its properties in Australia and New Zealand did not perform as well due to continued Covid-19 restrictions in these markets.

 

The Australia portfolio recorded a $581,000 loss in NPI in the first quarter of 2022 compared with the fixed rental income of $1.2 million recorded in the same period last year.

 

In New Zealand, there has been a significant reduction in room utilisation rate across all isolation facilities after the government shortened its quarantine period for returning New Zealanders and progressively lifted border restrictions for non-New Zealanders.

 

As a result, Grand Millennium Auckland, which operated as a managed isolation facility since July 2020, registered a RevPAR decrease of 6 per cent year on year. The New Zealand business segment saw a decline of 24.4 per cent in NPI for the first quarter.

 

With most of its portfolio markets - except for Japan and New Zealand - significantly easing restrictions, CDLHT said it continues to observe a recovery.

 

" Looking ahead, international tourism volumes are likely to depend largely on the return of traveller confidence and corporate travel policies," its manager said in the business update.

 

" CDLHT will continue to pursue suitable acquisitions to diversify and augment its income streams, as well as evaluate divestment opportunities as they arise to unlock underlying asset values and/or recycle capital for better returns," it added.

 

Two CDLHT hotels in Singapore continue to operate as facilities used for isolation purposes and these contracts are expected to end by the third quarter of this year.

 

The other four are expected to be supported primarily by the return of international travellers, staycations, long-stay project groups, as well as the return of meeting groups, including major meeting, incentive, conference and exhibition events.

 

CDLHT also said that the onset of the Russia-Ukraine war has significantly reduced business from Russia and Ukraine source markets in the Maldives. The recovery in tourist arrivals in that market had been supported by source markets such as the United Kingdom, Russia, India and Germany.

 

However, the company added that the impact to its Maldives property is expected to be limited as the resort has lower exposure to the Russia and Ukraine markets.

 

As for its financial position, CDLHT has a debt value of $1.1 billion, a gearing of 39.8 per cent and cash reserves of about $92 million as at Mar 31, 2022. Gearing measures the proportion of a company' s borrowed funds to its equity and is often used by investors to establish a company' s financial leverage.

 

It also has approximately $213.2 million of credit available for drawdown, and another $358.7 million in short-term loan facilities available for acquisitions.

 

Over $106 million has also been committed to fund its build-to-rent residential development in the UK.

 

CDL Hospitality Trusts (CDLHT) CDL HTrust: J85 -0.82% has indirectly acquired a 4-star hotel in Manchester, the United Kingdom. The total acquisition cost is about £ 24.1 million (S$43.8 million).

 

The purchase consideration, which is subject to post-completion adjustments, amounts to £ 4.3 million - of which £ 3 million has been paid to the seller of the property. The remaining £ 1.3 million has been retained until certain conditions are met.

 

The move allows the stapled group &ndash which owns lifestyle hotels like W Singapore - Sentosa Cove and Studio M Hotel in Singapore &ndash to further penetrate the lifestyle hotel market, the managers said in a bourse filing. 

 

The managers expect the acquisition to be accretive based on pro forma estimates. Had the acquisition been completed on Jan 1, 2021, and CDLHT held the property through Dec 31, 2021, the distribution per stapled security (DPS) for CDLHT would have been S$0.0432 instead of S$0.0427. This translates to a DPS accretion of 1.1 per cent.

 

As part of the transaction, a wholly-owned subsidiary of CDL Hospitality Real Estate Investment Trust (CDL H-Reit) on Tuesday (Feb 22) entered into a share and purchase agreement with RAHoldingsUK to acquire Roundapple Hotel Partners III - which holds Hotel Brooklyn.

 

Roundapple Hotel Partners III holds a leasehold interest in Hotel Brooklyn with a remaining lease term of 196 years. It leases out the entire property to HLD (Manchester) - which is part of a group under Marshall Holdings, whose principal activities are in commercial development and construction.

 

The occupational lease is a " full repairing and insuring lease" that will provide a fixed income stream for CDLHT, the managers said. It is subject to upward-only rent review provisions broadly based on inflation.

 

Post-acquisition, CDLHT' s hotel portfolio fixed rent will rise by 7.8 per cent, assuming the stapled group owned the property from Jan 1, 2022. 

 

The hotel has an independent property valuation of £ 25.3 million as at Dec 31, 2021. This is 10.9 per cent higher than its agreed property value of £ 22.8 million.

 

The net asset value of Hotel Brooklyn is £ 4.4 million, taking into account its agreed property value, as well as an £ 18 million in bank and shareholder loan amounts to be repaid by Roundapple Hotel Partners III at completion.

 

The managers plan to finance the total acquisition cost through debt. Assuming it was completed on Dec 31, 2021, CDLHT&rsquo s gearing ratio would be 40 per cent, according to pro forma estimates.

 

Hotel Brooklyn - located at 57 and 59 Portland Street - has been fully operational since May 2021, although it commenced operations in February before closing for business intermittently between then and April 2021. The 189-room hotel has 2 food and beverage outlets, 3 meeting rooms that can be combined to form over 220 square metres of space, as well as a casino with a restaurant and bar.

 

It is within walking distance to the central business district, as well as tourist attractions like the Manchester Art Gallery, retail areas such as Market Street and entertainment hubs like the Manchester Arena. Hotel Brooklyn is also an 8-minute walk to Manchester Piccadilly &ndash the city' s main train station and is a 20-minute drive from Manchester Airport. 

 

CDL Hospitality Trusts is a stapled group comprising CDL H-Reit and CDL Hospitality Business Trust.