DBS Group Research said Singapore's hoteliers may find it challenging to sustain growth in 2025 from a high base in 2024, The Edge Singapore reported Tuesday.
The country saw strong tourism numbers in 2024 due to visa-free arrangements with China and Taylor Swift concerts, analysts from the equity research firm said.
In 2025, hotels will approach the tail end of the pandemic recovery with more modest revenue per available room (RevPAR) prospects at between 2% and 3%, the analysts said.
DBS said new attractions like Disney cruises and the expansion of Resort World Sentosa could be major tourist draws, although they could materialize by H2 next year at the earliest.
The research firm has selected CapitaLand Ascott Trust (SGX:HMN) as its top pick among Singapore hotel real estate investment trusts (REITs), due to its diversified global portfolio amid a weakening operating environment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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