Strategy

CDL Hospitality Trusts' objectives are to maximise the rate of return of Stapled Security Holders and to make regular distributions. The Managers plans to achieve these objectives through the following strategies:

Acquisition Growth Strategy

  • Exercise investment rigour and discipline to pursue quality assets with growth potential
  • Adopt a medium to long term perspective to ride through market cycles
  • Tap on potential pipeline from M&C / CDL

Asset Management Strategy

  • Work closely with master lessees and/or hotel managers to implement active revenue and cost management;
  • Implement asset enhancement initiatives to optimise asset potential

Capital Recycling Strategy

  • Monitor and evaluate the potential of the properties under management and assess opportunities for divestment periodically
  • Undertake divestments to recycle capital in search of better growth prospects and returns, rebalance portfolio and/or unlock underlying asset values

Capital Management Strategy

  • Maintain a healthy balance sheet
  • Enhance financial flexibility by maintaining diversified sources of funding
  • Hedge against rising interest rates by refinancing with longer term fixed rate borrowings
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