SINGAPORE (Jan 4): CIMB is "overweight" on the hospitality REIT sub-sector given RevPAR for Singapore hotels is expected to recover stronger at 7% y-o-y in 2018 versus 3% previously.
With supply tapering off and demand continuing to dial up, CIMB expects RevPAR climbing another 5% to $224 in 2019, potentially reaching the previous peak recorded in 2012.
"In addition, our bottom-up RevPAR analyser suggests that hospitality REITs, especially CDL Hospitality Trusts and OUE Hospitality Trust, are already at an inflection point," says analyst Yeo Zhi Bin in a sector report on Tuesday.
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