Brokers' take

Singapore Hospitality Sector | Neutral (maintained) OCBC Investment Research, July 10

Since the start of June to July 9's close, hospitality S-Reits under our coverage have each posted a total return ranging from -0.9 per cent (Ascott Residence Trust) to -5.3 per cent (Far East Hospitality Trust).

While valuations now look more attractive than they were previously, the key risk in our view is still that of rising interest rates, and the impact of that trend on the dividend yields investors will subsequently demand from Reits.