Eing and Lock expect this government-driven support to continue into 2022, anticipating that some 60% of REITs’ occupancy will be supported by government contracts in 2021 before this comes down to an average of 40% in 2022.
CGS-CIMB Research anticipates Singapore hospitality REITs to deliver better revenue per average room (RevPAR) in the 2Q2021, on the back of government contracts in Singapore combined with better performance from select overseas markets.
For Singapore, analysts Eing Kar Mei and Lock Mun Yee point out that following the rise in Covid-19 cases in recent months, government contracts for hotels have risen to 40% as of June, compared to 30% in December 2020.
