Ascott Residence Trust (Ascott) owns 88 hospitality properties across 15 countries globally with a range of offerings like serviced residences, hotels and rental housing. Post-merger with Ascendas Hospitality Trust in 2019, it is currently the largest hospitality trust in Asia Pacific and has a market capitalization of S$3bn and S$7.4bn of assets under management. We think that its share price has been beaten down badly by the Covid-19-induced market turmoil and offers investors good value due to:

Highly geared to domestic travel rebound

As economies gradually reopen, governments are encouraging domestic travel to revive their fallen hospitality sectors as borders remain tightly controlled. Given Singapore’s small size and population, domestic travel has a far smaller role in reviving our hospitality sector, in our opinion. We therefore think that more globally diversified hospitality stocks like Ascott, which has exposure across 15 countries, could be more geared to the recovery