Hospitality REITs - 2022 A Better Year
- Despite the emergence of Omicron, we see greater travel demand this year on fewer restrictions and a strong desire to travel, backed by data points.
- Singapore hotels should benefit from more VTLs, which boosted arrivals by 2-6x, while being supported by government contracts.
- The hospitality REITs are trading at 0.75-0.86x P/BV, below pre-COVID-19 level of 0.9-1.1x. We see further share price upside on stronger RevPAR which we estimate to be 20% y-o-y growth in 2022 and 30% in 2023.
- Ascott Residence Trust (SGX:HMN) remains our preferred pick for the sector.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-01-05 2022-01-05
Read also CGS-CIMB's most recent report:
2022-04-29 Ascott Residence Trust - Recovery Gaining Traction
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