CDL Hospitality Trust's RevPAR drops further by 1.4%

It is hurt by the bottoming of the hotel market.

CDL Hospitality Trust's Singapore operation has been badgered by declining revenue per available room (RevPAR) in the past quarter.

According to CIMB analyst Yeo Zhi Bin, the trust registered a 1.4% RevPAR decline, extending the 0.8% downtrend it recorded in the preceding quarter. For the first six months of the year, RevPAR dipped by 1.1%.

"We believe that RevPAR could continue to roll along the bottom, and recovery would only take place in 2H18," the analyst said.

Yeo added that the bulk of supply expected in 2Q17 has been deferred to 2H17, which implies that RevPAR could feel more pressure in the remaining six months of the year.