DBS Group Research analysts Geraldine Wong and Derek Tan believe CDL Hospitality Trusts (CDLHT) stands to gain from concerns over the Omicron variant.
The way Wong and Tan see it, CDLHT will benefit from an uptick in local staycation demand as border reopenings continue to see delays. “CDLHT continues to be one of the top beneficiaries to benefit from a staycation demand boost as Singaporeans look locally for holiday options this year-end,” they say in a Dec 6 research note.
The appearance of the Omicron variant has waylaid what the analysts view as “green shoots” in recovery, following indicators in 3Q2021 of markets resuming normalcy. Nonetheless, the analysts believe CDLHT’s Singapore hotels will likely see an extension of government block bookings to beyond 1Q2022 as a near-term hedge.
