With that, DBS likes Far East Hospitality Trust (FEHT), CapitaLand Integrated Commercial Trust (CICT) and Genting Singapore (GENS) as key beneficiaries.
FEHT is well-positioned with a mid-tier and upscale hotel portfolio spanning Orchard Rendezvous Hotel and Oasia Downtown, as well as investments in three Sentosa properties – Village Hotel Sentosa, The Outpost Hotel Sentosa and The Barracks Hotel Sentosa.
On that note, DBS is upbeat on GENS, as the operator of Resorts World Sentosa, including Universal Studios Singapore, the Oceanarium, and on-site hotels that benefit from increased tourist footfall. However, upside may be limited by subdued margins and stiff competition from Marina Bay Sands, especially on the gaming segment.
CICT on the other hand is the landlord of ION Orchard, a prime beneficiary of incremental luxury and discretionary spending. Additional uplift is also expected across its broader retail portfolio, including Plaza Singapura, Bugis+ and Raffles City, which attract high tourist traffic.
