Despite travel recovering, listed hospitality plays are unloved and may be privatised

SINGAPORE’S opening up along with that of many countries has led to a rise in international visitor arrivals, as well as hotel room and occupancy rates. Hotels here are also buoyed by the return of large scale events and relaxation of dining-in restrictions.

Perhaps because of optimism in the prospects for hospitality assets, some stapled security holders voted down the proposed privatisation of Frasers Hospitality Trust (FHT), which owns hotels and serviced residences in Singapore, the United Kingdom (UK), Australia, Malaysia, Germany and Japan, in September. The privatisation offer price of S$0.70 per stapled security was at above FHT’s book value.

Opponents of FHT’s privatisation may have scored a pyrrhic victory – as at Oct 14, 2022, FHT traded at 35 per cent below the privatisation offer price.