Hospitality S-REITs

Hospitality trusts (usually stapled structures) own hotels and serviced residences. Income is tied to RevPAR/RevPAU, occupancy and the travel cycle, making it more variable but also more recovery-sensitive than other sectors.

4 trusts S$5.8B combined cap 6.2% median yield 0.61x median P/NAV

Hospitality screen

REITPrice YieldP/NAV Mkt cap
CapitaLand Ascott Trust
SGX:HMN · CapitaLand
S$0.9106.74% 0.78S$3.50B
Far East Hospitality Trust
SGX:Q5T · Far East Orchard
S$0.5806.32% 0.66S$1.19B
CDL Hospitality Trusts
SGX:J85 · City Developments
S$0.7906.04% 0.56S$1.01B
Acrophyte Hospitality Trust
SGX:XZL · Acrophyte
US$0.1954.54% 0.28US$113M

Yield vs P/NAV

Hospitality trusts plotted. Up = higher yield; left = cheaper vs book.

Hospitality income swings with travel demand and RevPAR. Many hospitality trusts trade at discounts to book; the watch items are RevPAR recovery, asset-enhancement drag, and FX for the global portfolios.

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What drives the Hospitality sub-sector

Hospitality S-REITs are typically stapled trusts owning hotels and serviced residences, often globally. Their income is driven by revenue per available room/unit (RevPAR/RevPAU), occupancy and average daily rate — which makes them more cyclical, but also leveraged to travel recovery and tourism growth.

Key signals: same-store RevPAR trends, the drag from any asset-enhancement programmes (rooms taken offline), master-lease vs management-contract income mix, currency exposure for global portfolios, and gearing. The CLAS-style investment dashboard this site is modelled on is, fittingly, a hospitality trust.

Hospitality REITs — questions

Why are hospitality REIT yields so variable?
Hotel income moves with the travel cycle, RevPAR and occupancy, and can be temporarily depressed by rooms taken offline for asset enhancement. That variability — plus FX for global portfolios — is why hospitality yields and valuations span a wide range.

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