Recovery still on agenda after weaker performance from hospitality Reits

SLOWING growth in visitor arrivals and a lighter MICE calendar mostly resulted in softer-than-expected results from Singapore hospitality Reits for the first three months ended March.

But expectations still hold steady for an eventual recovery on the back of lower incoming supply.

Weaker distribution per units (DPUs) from hospitality REITs came "as hotel RevPAR (revenue per available room) softened year-on-year against 2018's stronger corporate-event calendar and a slowdown in tourist arrivals," said Maybank Kim Eng analyst Chua Su Tye, trimming DPUs by 1-3 per cent for FY19-20. Even years typically tend to have a fuller calendar of MICE events as opposed to odd years.