Exposure to overseas markets, however, has meant that the company’s REIT earnings will nevertheless be significantly affected in the coming year.
SINGAPORE (Apr 21): While the hotel industry has been hit by a slowdown in travel arising from the Covid-19 pandemic, strong fundamentals and pent up demand has seen analysts express cautious optimism that CDL Hospitality Trusts (CDREIT) will successfully weather the crisis.
While CDREIT’s local hotels – which comprise 65% of its asset portfolio – remain open, all onsite facilities have been closed until May 4, as part of Singapore’s circuit breaker measures. The measures may be further extended owing to an uptick in Covid-19 cases this month. Although, there has been some consistent demand for rooms, as the government has booked the hotels as accommodation for returning travellers serving as their 14-day stay-at-home notices.
