Singapore hotel Reits not out of the woods yet

WHILE valuations for Singapore's hospitality Reits look attractive after the counters have been driven down in recent weeks, it may be too early for investors to take the plunge just yet.

For one, with countries around the world slamming their borders shut, there is very little visibility as to when travel demand will return.

Meanwhile, with hotels running at low occupancies, it is likely that cuts to distribution per unit (DPU) are imminent, analysts say.

In Singapore's case - unlike many other countries - it lacks a domestic market to fall back on. The "circuit breaker" which kicked in this week also removes the option of marketing staycations to Singa…

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