CDL Hospitality Trusts (CDLHT) is revising its principal investment strategy, broadening its investment beyond hospitality assets to also include rental housing, student accommodation, co-living and senior housing. This revision in strategy would enable future investments across other asset classes within the spectrum of the lodging or accommodation space and bring about more inorganic growth opportunities as well as optionality.
The inclusion of these adjacent accommodation/lodging assets will enhance income stability through increased diversification, longer underlying length of stay, and higher proportion of CDLHT’s fixed-to-variable rent. These adjacent asset classes, which rely on different demand drivers to hospitality, will enable CDLHT’s portfolio to be less susceptible to adverse systemic changes and improve resilience of the portfolio.
This revision of principal investment strategy is in line with CDLHT managers’ key financial objectives to maximise the rate of return to Security Holders and to make regular distributions. The revision in principal investment strategy will take effect after 30 days from 26 July 2021.
