As you can see ...
...Fraser Centrepoint is now looking to list a new trust, Fraser Hospitality. After having retail and commercial, it is a matter of time before they come with a hospitality one. The timing couldn’t be better as the REITs have largely recovered from an initial shock when the Fed started cutting back on QE.
The initial portfolio will consist of 12 properties, of which 6 are hotels and 6 are serviced residences. It is similar to Ascott REIT in the sense that it has both hotels and serviced residences and also has an international profile. However, Fraser Hospitality is not as diversified as Ascott in terms of geographical regions and it does not have as many properties.
Based on the issue price of $0.88, the yield is expected to be 7% for FY 2015. Now let’s compare that to other currently listed hospitality trusts.