- Channel checks indicate that hoteliers are expected to deliver better than expected 3Q22 results.
- Room rates have leaped past pre-COVID levels, fueled by strong MICE line-up in 2H22 and longer average length of stay which has almost doubled from 2019 level.
- Hospitality S-REITs’ share prices have flat-lined in recent months but look set to re-rate further.
- - Read this at SGinvestors.io -
Robust travel demand and strong earnings to drive share price re-rating.
- With Formula One (F1) around the corner and a robust line-up of MICE events until the end of 2022, we believe that 2H22 will turn out to be a spectacular half for the hospitality industry. In our channel checks, we believe that hospitality S-REITs are likely to report strong RevPAR growth with potential for upside surprises come 3Q22 results/operational updates in its key market – Singapore (~40% of assets) – as the biggest driver.
- - Read this at SGinvestors.io -
Room rates have hiked past pre-COVID levels; strong MICE line-up to drive demand.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2022-09-22
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