Thursday, October 6, 2011

Hospitality

Hospitality: DBS issues a hospitality report estimating that if arrivals fall 8% to 12m nxt yr, the industry could face a risk of oversupply of hotel rooms. The current supply is expected to grow 6% nxt yr. In this bearish scenario, room rates could fall 15% and decline in earnings as much as 25% for some hospitality REITs. Far East Hospitality will be constructing three hotels by 2015, increasing room supply by more than 600 and Pan Pacific Group also expects to add to its number of rooms here.

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