Which hospitality REIT will outperform amidst high tourist arrivals?

The tourism board said tourist visitor arrivals will double in 2023.

The number of tourist visitors will double year-on-year to 12 to 14 million this year, which will uplift support for hospitality REITs in Singapore, CGS-CIMB said.

According to the Singapore Tourism Board, tourist receipts are expected to reach $14b and $18b for 2022 and 2023, respectively. This is more than half of the 2019 levels before the pandemic badly hit the tourism sector.

CGS-CIMB said CapitaLand Ascott Trust will be top stock amongst its peers due to its diversified portfolio and how it will gain so much from China’s economic revival.

Other hospitality REITs that will benefit are CDL Hospitality Trust, Far East Hospitality, and Frasers Trust.

Possible risks include new lockdowns and restrictions, a recession which may reduce travel demand, and hotel and airline operational constraints limiting numbers of international travellers.