“These encouraging signs point towards the ability of hospitality S-REITs with US exposures [such as] ARA US Hospitality Trust (ARAHT) and Ascott Residence Trust (ART) to post strong operating metrics come 1HFY2022 results,” they add.
With a summer surge in travel demand on the cards in the US, DBS Group Research analysts Geraldine Wong, Tabitha Foo and Derek Tan are “excited” about the prospects of a rebound in operating metrics in US hospitality properties.
“We see a variety of positive indicators starting from major US airlines raising guidance on higher-than-expected ticket prices and capacity yields, cruise spending now just 10% shy of full recovery, and strong forward booking trends on travel websites,” the analysts write in their June 14 report.
