Dismal earnings await hospitality REITs as supply headwinds mount

Even higher tourist arrivals won't help.

If the Singapore Tourism Board's lacklustre November hospitality statistics is anything to go by, then listed hotel owners will likely report soft results for the last quarter of the year.

Although tourist arrivals jumped 4.3% year-on-year to 1.2 million people, hotel rates still declined on back of a 6-7% increase in new room supply.

According to DBS, the average daily rate (ADR) for local hotels dropped 4% year-on-year to $243, while revenue per average room (RevPAR) declined to $210.

"The weakness in RevPAR and recovery in tourist arrivals was in line with our expectations, and the Singapore hospitality market is on track to hit our estimate of a 5%
fall in RevPAR and total visitor arrivals of c.15m in 2015," DBS said.

"Against this backdrop, we expect hotels under various SREITs to remain under pressure with the hospitality REITS delivering weak 4Q15 results," the report noted.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia