Shares of Frasers Hospitality spiked as much as 7.9%, the most since November 2020, after the Bloomberg News report. The stock is currently trading 5.3% higher, giving it a market value of S$1.16 billion ($850 million). The benchmark Straits Times Index is down 0.8%.
The move reflects the conundrum faced by Singapore’s hospitality REITs, which have seen a sell-off as the pandemic battered the travel industry. The country will take “a few years” to return to pre-Covid tourism, Singapore Tourism Board Chief Executive Officer Keith Tan said in a Bloomberg Television interview on Friday.
Frasers Hospitality Asset Management, which manages the REIT, said that from time to time the managers review strategic options to enhance and unlock value for shareholders.
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“There is no certainty or assurance that any transaction will result from such review, and the managers may decide to continue with FHT’s existing business strategy,” Frasers Hospitality Asset Management said Friday in an exchange filing after Bloomberg submitted queries. “No written proposals have been received and no decisions have been taken in this respect.”
With a portfolio valued at S$2.25 billion, according to figures published on its website, Frasers Hospitality Trust oversees 15 properties across Asia, Australia and Europe. The company reported higher revenue per average room across its Asia-Pacific and Europe portfolios, it said in its first-quarter business update in February.
