In a September 2 report, analyst Chu Peng says, “Overall, we observe that Serviced Residences (SR) were more resilient as compared to Hotels due to SR’s longer pre-existing leases and lease extensions from project groups and corporate business; countries catering to transient travellers were more impacted than those catering to long-stay travellers; and properties which sought alternative sources of revenue were less impacted.”
The Covid-19 pandemic has heavily affected the hospitality industry worldwide, and Singapore is no exception. The hospitality REITs continued to bear the brunt of the pandemic as their 1H20 results were rather lacklustre and came in below OCBC Investment Research’s expectations.
This was due to a weaker-than-expected operating environment and retention of distributable income.
