Tourist arrivals soar, but are hospitality REITs ready to fly?

SINGAPORE (July 19): Singapore’s hospitality REITs look set to fly on the back of falling room supply and rising tourist arrivals.

But Jefferies equity analyst Krishna Guha says meetings with the management of hospitality REITs CDL Hospitality Trusts (CDREIT) and Far East Hospitality Trust (FEHT) suggest a “guarded optimism” as the positives are offset by falling duration of stay.

Singapore’s visitor arrivals in May grew 9.8% y-o-y to reach 1.3 million, after four consecutive months of double-digit growth in January to April.

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