“We believe that ARAHT will likely see an uplift in RevPAR ahead as we turn more positive on travel demand and on the back of inflationary pressures as well as higher willingness to spend,” they say, while adding that they are bullish on the trust’s top and bottom lines for the second quarter of 2022.
DBS Group Research is keeping its “buy” recommendation on ARA US Hospitality Trust (ARAHT) with an unchanged target price of 70 US cents (97 cents), as recent sector-wide data shows a front-ended loaded recovery unfolding as summer break works its magic this holiday season.
In a June 14 report, analysts Geraldine Wong and Tabitha Foo write: “ARAHT’s US hotel portfolio is best poised amongst the S-REITs to ride on this uptrend, with a turnaround in profits likely to be unveiled in the upcoming quarters. This is on the back of an uplift in revenue per available room (RevPAR) which we think will drive a share price re-rating.”
