We initiate coverage on Hotel Properties Limited (HPL) with

an

gives 77% potential upside.

HPL is predominantly a hotel operator with strong ancillary

retail experience accompanied by opportunistic high-end

residential developments, HPL currently sits on 2.6m sqft

of prime land-bank (with potential to increase to 4.6m sqft)

and is well-positioned to take advantage of the current real

estate re-rating cycle in Singapore.

The current revitalisation of Orchard Road and the

subsequent

District

space. However, we feel that policy changes such as

significant Plot Ratio increases for commercial usage are

necessary in order to coax the likes of HPL to seriously

consider redevelopment. We have assumed enhanced Plot

Ratios of 8x for its land-bank, which we estimate will add a

potential $2.6bn/$5.80 per share.

HPL?s ability to deliver consistent superior finishes to its

high-end residential developments ensures premium

pricing for its current projects (Beverley Mai and Horizon

Towers). Targeted for launch over the next 24 months,

these two projects are expected to yield $530m/$1.17 per

share.

Further upside could come from successful en-bloc

acquisition of Ming Arcade and the possible buyout of the