The global travel boom is no longer just a recovery story – it has become a durable engine for growth.
While high interest rates have pressured many sectors, hospitality REITs are thriving by turning surging room rates and strategic renovations into tangible returns.
For income-seeking investors, the “suite” spot lies in trusts that can pass on rising costs while maintaining high occupancy.
We dive into three hospitality heavyweights that have successfully raised their payouts, proving that the travel splurge is far from over.
CapitaLand Ascott Trust (SGX: HMN)
CapitaLand Ascott Trust (CLAS) stands as the largest lodging trust in Asia Pacific, commanding a massive S$8.9 billion portfolio that spans 103 properties across 16 countries.
The trust offers a unique mix of serviced residences, hotels, rental housing, and student accommodation.
For the full year 2025 (FY2025), CLAS reported a 3% year-on-year (YoY) increase in revenue to S$837.6 million, while gross profit grew 4% to S$385.3 million.
Investors will be pleased to note that the distribution per stapled security held steady at S$0.061 despite a challenging high-interest environment.
A standout metric for the trust was its portfolio occupancy, which improved from 77% to 80%, subsequently lifting the revenue per available unit (RevPAU) by 3% to S$161.
Performance was particularly robust in Singapore, where RevPAU climbed 8% in the final quarter of 2025 (4Q2025) to S$193, thanks to major concerts and the Grand Prix.
CLAS has also been active in recycling capital, divesting two Tokyo and Kyoto properties at significant premiums to book value while acquiring higher-yielding rental housing in Osaka and Kyoto.
With a gearing of 37.7% and a significant portion of its debt fixed at an average cost of 2.9%, CLAS remains well-positioned to reach its goal of allocating up to 30% of its portfolio to the stable living sector.
CDL Hospitality Trusts (SGX: J85)
Managing a S$3.5 billion portfolio of 22 properties including luxury hotels and build-to-rent apartments, CDL Hospitality Trusts (CDLHT) reported mixed results for the full-year 2025 (FY2025) due to renovation disruptions.
The second half of the year (2H2025) showed a clear turning point for the trust.
For 2H2025, net property income (NPI) rose 3.5% YoY to S$71.1 million, which supported a 0.4% increase in the distribution per stapled security to S$0.0282.
This recovery was largely driven by a stellar performance in Australia, where NPI surged 93.9% following the successful relaunch of the renovated Ibis Perth.
Another key performance metric is the trust’s cost of debt, which was successfully reduced to 3.0% following the strategic issuance of S$150 million in perpetual securities.
Management has also focused on premiumization, rebranding its Maldives asset to join the Marriott Autograph Collection to leverage a global distribution network.
With major refurbishment works now complete at W Hotel and Grand Millennium Auckland, CDLHT is poised to capture higher room rates as these refreshed assets return to full inventory.
The trust maintains a healthy gearing of 37.7%, providing the financial flexibility needed to explore further inorganic growth opportunities.
Centurion Accommodation REIT (SGX: 8C8U)
Centurion Accommodation REIT (CAREIT) has made a significant splash since its listing in September 2025, specializing in the resilient niche of purpose-built worker and student accommodation.
For its inaugural financial period ended 31 December 2025, the trust delivered a distribution per unit (DPU) of S$0.01739, which remarkably outperformed its own IPO forecast of S$0.01630 by 6.7%.
This outperformance was underpinned by gross revenue of S$50.7 million, exceeding projections by 3.4% as the trust successfully pushed through higher rental rates.
A defining metric for CAREIT is its near-full occupancy, which reached 97.6% for its worker accommodation and an even more impressive 99.1% for its student housing portfolio.
These high levels of utilization demonstrate the acute supply-demand imbalance in the specialized lodging sector.
On the capital management front, the trust maintains a pro forma aggregate leverage of 30.7% following its post-period acquisition activity, far below the regulatory limit, with a healthy interest coverage ratio of 6.6 times.
With S$348 million in debt headroom and a portfolio valuation that has already seen an uplift to S$1.88 billion, CAREIT is well-equipped to pursue further expansion in Singapore, the UK, and Australia.
The trust’s ability to beat its listing projections so early in its tenure signals strong organic growth potential from its stabilized asset base.
Get Smart: A Golden Age for Lodging
The performance of these three REITs highlights the enduring appeal of the hospitality sector in a post-pandemic world.
By focusing on asset enhancement and maintaining disciplined capital management, these trusts have turned operational challenges into distribution growth.
Investors should look for managers who proactively refresh their properties to maintain competitive room rates while keeping a close eye on gearing levels.
However, one should remain mindful of the changing geopolitical climate, which could impact international travel patterns and global economic stability.
As demand for high-quality accommodation remains robust, the sector continues to offer fertile ground for income-seeking investors.
Staying invested in high-quality assets is a smart way to capture the ongoing global shift toward specialized lodging.
Imagine receiving steady rent increases for more than two decades. It sounds unusual, but one healthcare REIT already has rental escalations locked in until around 2042. Income visibility like this is hard to find today. We break down how this REIT built such dependable cash flow in our FREE dividend report and how it could strengthen a retirement portfolio. Get the free report here.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: The Smart Investor does not own any of the stocks mentioned.
