Luckily for US, domestic demand has been historically made up of about 85% of total travel and tourism spending. And now with US internal border restrictions largely being called off, an increasing vaccine coverage and strong pent-up demand, Wong sees a positive travel sentiment taking shape.
DBS Group Research is keeping its "buy" call on ARA US Hospitality Trust (ARAHT) with a higher target price of 79 US cents from 69 US cents previously.
In a July 9 report, lead analyst Geraldine Wong says, "We believe that ARAHT is on the verge of an operational breakout. Recent sector-wide data shows a front-end loaded recovery unfolding as summer break works its magic this holiday season. ARAHT’s US hotel portfolio is the most favourably poised amongst the S-REITs to ride on this uptrend, with a turnaround in profits likely to be unveiled in the upcoming quarters."
