Far East Hospitality Trust and Ascendas Hospitality Trust both reported falls in gross revenue in the last quarter, blaming softer demand, combined with an influx of new hotel rooms.
Singapore’s strong dollar is deterring visitors and corporate travellers from visiting, local media has reported. The result is falling demand for accommodation, bad news for some of the top hospitality Reits (real estate investment trusts) in the country.
Far East Hospitality Trust and Ascendas Hospitality Trust both reported falls in gross revenue in the last quarter, blaming softer demand, combined with an influx of new hotel rooms.
“Demand for accommodation was muted, as firms stayed prudent in their corporate travel spending, and leisure travellers from some major markets were affected by the relatively strong Singdollar,” said Gerald Lee, chief executive of FEO Hospitality Asset Management.
The dip in demand for hotel accommodation could persist, the trust believes, given global economic uncertainties and Singapore’s strong currency.