SGX Market Updates

SGX Biggest Hospitality Stocks Average 20% YTD Gains


14 December 2017

  • Singapore’s 20 largest Hotel, Restaurant and Leisure stocks have averaged 20% total returns in the 2017 YTD, with 17 gainers and three decliners. The three largest stocks of the 20 were also the group’s YTD best performers – Genting SP, Shangri-La Asia and Mandarin Oriental.

  • Both Shangri-La Asia and Mandarin Oriental are secondary listings. For the first 11 months of 2017, Shangri-La Asia’s average monthly turnover was up 3.6x from its 2016 levels, while Mandarin Oriental International’s average monthly turnover was up 3.0x.

  • No Signboard and Kimly have joined the 20 largest Hotel, Restaurant and Leisure Industry after listing this year. RE&S Holdings is currently the 22nd largest capitalised stock of the Industry. The debutant trio have averaged 15% total returns.

Comparative Performances

The Hotels, Restaurant and Leisure Industry, as defined by the Global Industry Classification Standard (GICS®) has continued to expand in Singapore this year, with new listings, in addition to the 20 biggest stocks of the Industry averaging 20.1% total returns. The Hotels, Restaurant and Leisure Industry is a sub-industry of the cyclical Consumer Discretionary Sector.

These 20 SGX-listed stocks include both local and international businesses, with a combined market capitalisation of S$42.8 billion.

The performance of the group of 20 stocks was not dissimilar to the average year–to-date gains of McDonalds Corporation, Starbucks and Las Vegas Sands Corporation. Together the US-listed trio, which according to Bloomberg are the world’s biggest Gaming, Lodging & Restaurant stocks, averaged a 22.2% total return in SGD terms.  

In Singapore, the cyclical Hotels, Restaurant and Leisure Industry, has generally performed better in the 2017 year-to-date than in 2016. Of the 20 stocks that averaged a 20.1% total return in the 2017 year-to-date, 18 were listed last year and averaged 5.9% total returns.

Largest Capitalised Hotels, Restaurant and Leisure Stocks

As noted above Hotels, Restaurants and Leisure stocks are part of the Consumer Discretionary Sector. The Consumer Discretionary Sector has performed comparatively well this year, along with other Cyclical Sectors. The Consumer Discretionary Sector generated an indicative market capitalisation weighted total return of 28% in the 2017 year through to 30 November, which was the fifth best performing segment of stocks (click here for more).

Of Singapore’s 20 biggest stocks of the Hotel, Restaurant and Leisure Industry, the three best performers in the year-to-date, in Singapore Dollar terms, were Shangri-La Asia (+87.4%), Genting Singapore PLC (+52.0%) and Mandarin Oriental International (+48.9%).  Both Shangri-La Asia and Mandarin Oriental are secondary listings. For the first 11 months of 2017, Shangri-La’s average monthly stock turnover was up 3.6x from its 2016 levels, while Mandarin Oriental International’s average monthly turnover was up 3.0x

November also saw the listing of two restaurant operators:

  • No Signboard Holdings (click here); and
  • RE&S Holdings (click here).

RE&S Holdings is currently the 22nd largest capitalised Hotel, Restaurant and Leisure stock.

The trio of debutants in 2017 - Kimly, RE&S Holdings and No Signboard Holdings have averaged 14.7% total returns from their respective initial offer prices.

Hospitality Related Trusts

SGX also lists five stapled trusts that invest in hospitality-related properties with a combined market capitalisation of S$7.2 billion. These five stapled trusts are CDL Hospitality Trusts, Far East Hospitality Trust, OUE Hospitality Trust, Frasers Hospitality Trust and Ascendas Hospitality Trust. Together the five trusts have averaged 31.7% total returns and maintain an average indicative distribution yield of 6.1%. These five stapled trusts currently trade at a price-to-book ratio of 0.99x, compared to their five year average of 0.88x.

SGX also lists Ascott Residences Trust which invests in serviced residences, rental housing properties and other hospitality assets in the Americas, Asia Pacific and Europe. Ascott Residences Trust has generated a 19.3% total return in the year thus far and its asset size has quadrupled to S$5.1 billion since listing on SGX in March 2006.

Like the Hotels, Restaurant and Leisure stocks, hospitality trusts can be sensitive to business drivers that include visitor arrivals, hotel room vacancies, hotel revenue per available room and new hotel room supply.

Singapore’s International Visitor Arrivals up 5% in 9M17

The Singapore Tourism Board (STB) reported last week (click here) that international visitor arrivals into Singapore by air, sea and land for the first nine months of 2017 were up 5.1% year-on-year.

A total of 13.05 million visitors were recorded for the nine months, which included 4.58 million visitors from South-East Asia (+3.3%), 2.49 million visitors from China (+9.5%) and 1.39 million visitors from Europe (+7.3%). Last year STB noted that Singapore generated S$24.8 billion in tourism receipts on the back of 16.4 million visitor arrivals, which were both historical highs (click here to read more).

Recent Returns and Financials of Largest Capitalised Hotels, Restaurant and Leisure Stocks

Note the table below includes the SGX 20 biggest stocks of the Hotel, Restaurant and Leisure Industry and does not include Hospitality-related REITs or Stapled Trusts. To see the profile of each stock in SGX StockFacts, click on the stock name.

Direct links to recent Financials are also included in the table below.

Name SGX
Price *
2016 %
Dvd Yld
Financial Statement
Genting Singapore PLC G13 16,114 1.340 21.6 52.0 2.2 Click here
Shangri-La Asia S07 10,143 16.360 18.4 87.4 0.9 Click here
Mandarin Oriental Intl M04 3,364 1.980 -13.2 48.9 2.1 Click here
Genting Hong Kong S21 2,692 0.235 -4.3 -21.7 8.7 Click here
Hotel Properties H15 1,967 3.780 2.3 1.2 1.1 Click here
OUE LJ3 1,668 1.850 0.5 7.0 1.6 Click here
GL B16 1,177 0.860 -10.7 16.0 2.5 Click here
Hotel Grand Central H18 980 1.420 20.2 9.7 3.5 Click here
Accordia Golf Trust ADQU 753 0.685 31.0 17.0 7.4 Click here
Straco Corporation S85 706 0.820 -10.9 11.1 3.1 Click here
Breadtalk Group 5DA 462 1.640 5.4 46.7 2.4 Click here
Stamford Land Corp H07 432 0.500 -4.9 6.3 2.0 Click here
Banyan Tree Hldgs B58 429 0.535 18.5 11.5 N/A Click here
Kimly 1D0 417 0.360 N/A 44.9** 2.7 Click here
Jumbo Group 42R 375 0.585 49.4 -7.2 1.7 Click here
Hotel Royal H12 340 4.050 12.0 9.6 1.2 Click here
Amara Hldgs A34 302 0.525 -2.4 36.7 1.9 Click here
AF Global L38 222 0.210 -27.7 23.5 4.8 Click here
ABR Holdings 533 159 0.790 0.7 15.1 3.2 Click here
No Signboard Hldgs 1G6 111 0.240 N/A -14.3** N/A Click here
Average 5.9 20.1 2.9

Source: Bloomberg & SGX StockFacts (data as of 13 December 2017).
* Last price of companies are denoted in their respective trading currencies. SGD equivalents are shown in table.
** from initial offer price. Note the above list excludes Centurion Corp, as it is a workers and students accommodation owner operator.

Singapore’s Hospitality Sector Fuelled by Consumer Spending

Hospitality demand is fuelled by consumer spending which in turn is driven by rising incomes, population growth, tourism, trends and changing preferences. Appetites for corporate spending also impact hospitality businesses and can be just as cyclical as consumer spending.

In Singapore, hospitality stocks are largely represented by the Hotels, Restaurants and Leisure Industry in addition to those REITs and Stapled Trusts that invest in hospitality-linked properties. Unless the restaurant is a global brand, the hotel stocks tend to have larger market capitalisation than the restaurant stocks.

In Singapore the Urban Redevelopment Authority (URA) maintains that hotel rooms are specifically designed and constructed or substantially adapted to be used to accommodate persons for the purpose of gain or profit, with provision for a bar and restaurant. In recent years substantial adaptations to accommodate persons through the likes of Airbnb have provided fresh competition to the Hotel Industry. On the other hand, more mobile first delivery platforms have made restaurants more accessible to consumers.

Did you Know?

Singapore’s newest addition to the Hotel, Restaurant and Leisure Industry is No Signboard Holdings, which made its debut on the Catalist board on 30 November. Well known for being a premium seafood restaurant operator, the company mentioned in its offer document that it intends to diversify into casual dining, beer brewing as well as a ready-to-eat meals.

This article is provided by SGX My Gateway.

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