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With travel back on the cards, hospitality 'waiting for lift-off': DBS

Jovi Ho
Jovi Ho12/2/2020 09:38 AM GMT+08  • 3 min read
With travel back on the cards, hospitality 'waiting for lift-off': DBS
The analysts prefer Ascott Residence Trust and CDL Hospitality Trust for their attractive valuations.
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With travel plans back on the cards in 2021, the hospitality industry here is “waiting for lift-off”, owing to strong pent-up demand, says DBS Group Research analysts Derek Tan and Geraldine Wong.

“The hospitality sector has borne the brunt of the Covid-19 pandemic but there is now light at the end of the tunnel,” say the analysts in a Dec 1 note. “With vaccine candidates clearing final trials and entering production, mass travel (especially for leisure) is likely to resume in 2021.”

The analysts prefer Ascott Residence Trust and CDL Hospitality Trust for their attractive valuations, maintaining “buy” on both trusts with target prices of $1.20 and $1.40 respectively. Far East Hospitality Trust is the analysts’ next pick, with a “buy” call and target price of 70 cents.

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