Hospitality Sector

[winston]

Hotels Rebound: Sustainable Over the Long Term?

Source: Zacks Equity Research

http://www.thetradingreport.com/2016/03 ... long-term/

[winston]

China 1Q16 Tourism Sector Investment RMB117.55B, Up Over 10% YoY

China National Tourist Office said in the first quarter of 2016, the constructing tourism projects were 8,935, with an actualized investment RMB117.55 billion, up 10.38% compared to same period last year.

Source: AAStocks Financial News

[winston]

Selected stocks potentially affected if Zika outbreak worsens

- CDL Hospitality Trust, Far East Hospitality Trust, OUE Hospitality Trust, SATS, Genting Singapore, and Singapore O&G

Source: DBS

[winston]

One of the most ‘compelling’ growth stories on the planet

by JONATHAN GARBER

China’s middle class is booming. And with that explosion of wealth comes the opportunity for the Chinese to try and experience new things, including traveling abroad.

While only about 6% of Chinese citizens have passports, their overseas spending is the highest in the world, amounting to about $200 billion over the last three years, or about the size of Greece’s economy. Their spending has gotten so crazy that Japan even created a new word, bakugai, to explain their “explosive buying.”

While Japan has no doubt been a big beneficiary of Chinese tourism, it doesn’t even come close to being the biggest in the region. According to a note from BNP Paribas analysts Richard Iley and Mole Hau sent out to clients on Thursday, Chinese tourism is “spilling out around the region” and is “one of the most compelling structural growth stories on the planet.”

BNP noted that the biggest beneficiary of China’s tourist boom, excluding Hong Kong, is Thailand, which saw nearly 8 million Chinese tourists in 2015 alone.

And their spending has been a boon to the Thai economy, accounting for nearly 3.5% of GDP. This has been especially helpful since Russian tourism in the country slid sharply in the wake of the ruble’s sharp devaluation.

Source: Business Insider

http://www.businessinsider.my/chinese-t ... mu8jT5D.99

[winston]

3 Hotel Stocks That Could Be All Smoke and Mirrors

The huge equity splurge by China's HNA Group means nothing for hotel stocks.

By Josh Enomoto

Source: Investor Place

http://investorplace.com/2016/10/3-hote ... BLWePl96M8

[winston]

SG Hospitality: Top picks – current price levels attractive

For the hospitality counters we cover, 3Q16 DPU growth ranged from -2.5% to -7.4% YoY, after adjusting for one-off items and equity financing.

Growth in Hotel revenue per available room (RevPAR) ranged between -5.8% to -7.8% in 3Q16, with all the REITs citing poor corporate demand as the reason for declines.

Looking forward to FY17, with a forecasted 6.1% growth in hotel rooms and tepid economic growth outlook, RevPARs are expected to continue their decline, in our view, and especially so for hotels that rely on corporate demand.

RevPARs are only expected to improve in FY18 with better supply-demand dynamics.

While we expect single-digit RevPAR declines next year, current price levels look very attractive for some of the REITs under our coverage – we are positive on Ascott Residence Trust (ART) [BUY; FV: S$1.24], and CDL Hospitality Trust (CDLHT) [BUY; FV: S$1.48] and OUE Hospitality Trust (OUEHT) [BUY; FV: S$0.73].

Source: OCBC

[winston]

Singapore hotels continue to suffer

Zika fears and other factors continue to impact performance in November 2016

by Mark Elliott

November 2016’s revPAR was the lowest since 2009

Singapore’s hotel sector continued to see falling rates and occupancy in November 2016, continuing a string of poor monthly results.

Demand for rooms in the Lion City increased 2.2% last month, but this failed to keep up with a 4.0% expansion of supply.

As a result, Singapore’s average occupancy dipped 1.8% to 81.1%, and the city’s average daily rate (ADR) declined 4.2% to SG$273.49 (approx. US$191).

Revenue per available room (revPAR) fell 5.9% to SG$221.74.

STR analysts noted that the market has struggled since concerns over the Zika virus surfaced in August. Consistent supply growth (+3.5% in the year to October 2016) and fewer major events have also contributed to the downturn.

November 2016’s revPAR marks the lowest for a November in Singapore since 2009.

Source: Travel Daily Media

http://www.traveldailymedia.com/244862/ ... to-suffer/

[winston]

Broker's take: DBS says Singapore hotel Reits now attractive privatisation targets

by RACHEL MUI

DBS Group Research on Monday said that hotel Singapore real estate investment trusts (S-Reits) are now trading below replacement cost, and serve as "attractive privatisation candidates".

They are now trading at 0.5-0.6 times price to net asset value, at -2 standard deviation of their 10-year mean".

The four Reits are CDL Hospitality Trusts (CDLHT), Ascott Residence Trust (ART), Far East Hospitality Trust (FEHT) and Frasers Hospitality Trust (FHT).

"On an enterprise value per room basis, we found all four S-Reits trade at an implied valuation per room of S$0.5 million to S$1.2 million per room, with CDLHT and FEHT the lowest at less than S$0.6 million per room. This is even cheaper than recently transacted land costs for hotel sites in recent years," DBS noted.

DBS has upgraded its calls on FEHT and FHT to "buy", while revising its target price on the counters to S$0.60 and S$0.65 respectively.

"Among the four hotel S-Reits, FHT and FEHT could be attractive privatisation candidates as they have been least active in tapping capital since listing".

DBS research team expects a "swift recovery" when the global lockdown ends, and forecasts earnings normalisation will take place from fiscal year 2021.

ART remains DBS's pick to leverage on the global recovery. The research team has a "buy" recommendation and a target price of S$1.10 on the counter.

Source: Business Times


https://www.businesstimes.com.sg/stocks ... on-targets

[behappyalways]

Why Marriott, Hilton and Hyatt Don’t Actually Own Most of Their Hotels | WSJ The Economics Of
https://m.youtube.com/watch?v=qFUuUzZNznY