Singapore’s hospitality REITs are improving q-o-q, though the outlook remains uncertain, say CGS-CIMB analysts Eing Kar Mei and Lock Mun Yee in an Oct 31 note.
Eing and Lock are maintaining their ‘overweight’ call on Singapore REITs. They recommend ‘add’ on three highlighted companies: Ascott Residence Trust (ART target price: $1.05), CDL Hospitality Trust (CDLHT target price: $1.16) and Far East Hospitality Trust (FEHT target price: 62.9 cents).
The analysts note that revenue per available room (RevPAR) declined between 56% to 95% for hospitality REITs in 3Q20 due to Covid-19. “We expect Singapore government business to gradually decline, partially offset by staycation and special travel arrangements with various countries.”