On May 13, Frasers Property (FPL) and Frasers Hospitality Trust’s (FHT) manager announced an offer by FPL and TCC Group for FHT at 70 cents to all of FHT’s minority security-holders to privatise the trust via a scheme of arrangement.
Hospitality trusts listed on the SGX have experienced a challenging and sometimes turbulent 16 years since the IPOs of the initial trusts, Ascott Residence Trust (ART) in March 2006, and CDL Hospitality Trusts (CDLHT) in July of the same year.
Nothing quite impacted the hospitality sector more than Covid-19 pandemic. Travel stopped and most economies were in some form of lockdown for close to two years. This meant that occupancy rates for hotels dropped drastically to well below breakeven levels.
