Japan hotel REITs takes a hit due to Coronavirus
Japanese real estate investment trusts with hotels in their portfolios are slumping as the new coronavirus keeps travelers away. Three of four hotel REITs disclosing January revenues have reported year-on-year drops. The Chinese government on Jan. 27 banned group tours abroad, causing a rash of cancellations. Ichigo Hotel REIT Investment said that revenue per room retreated 10% on the year in January. Hotel bookings in Osaka in particular have suffered from cancellations by Chinese visitors, as well as lower traffic from South Korea. Invincible Investment's revenue per room slipped 5% in Japan. Japan Hotel REIT Investment's figure dropped 1% for January and could shrink more than 20% this month. "Cancellations could come from travelers besides those from China," said Hisashi Furukawa, president of affiliated asset manager Japan Hotel REIT Advisors.
Tags : INTERNATIONAL