ホテル系不動産投資信託の成長の鍵、ホテルの質ともてなしの心　　　　　　　気ままなリライト７８

ホテルREIT「千客万来」なるか　旅行回復で増配期待 - 日本経済新聞

With the beguiling economic landscape concealing the potential market vulnerabilities poised to surface, income-focused investors are staking their bets on the performance of Japanese hotel Real Estate Investment Trusts (REITs), capitalizing on the global resurgence of wanderlust as a strong tailwind. While the steady income flow from tourism-related REITs to shareholders in the form of dividend payments is maintaining a positive investor sentiment, the sustainable growth in the dividend is being put to the test.

An increase in the stock prices of hotel-focused REITs demonstrated their magnetic force towards investors and the impressive performance of those indexes in comparison with the broader REIT market. Atsuko Okumura, a senior fund manager at Risona Asset Management, conducted an analysis indicating a notable rise in that sector, saying “Hotel is quite a catch on this year’s REIT’s scene.” Invincible Investment Corporation, a leading hotel-focused REIT, marked a 13% surge in stock prices from the end of 2022 to May 10th. Other REITs also experienced increases, with Hoshino Resort Investment Corporation and Japan Hotel REIT observing 2% and 1% upticks respectively. By contrast, the Tokyo Stock Exchange REIT index reflected a 2% decrease in the average stock price during the same period.

Two metrics from the investor's analytical arsenal have indicated heightened expectations for the future growth of hotel-focused REITs. The Net Asset Value (NAV) serves as a benchmark against which the market price of a share is compared. If a share's market price exceeds the NAV, the fund is considered to be trading at a premium, suggesting that investors are paying more than the inherent value of the assets. The Price-to-Book Ratio (PBR) is another financial tool used to compare a company’s current market price with its net asset value—total assets less total liabilities. A PBR below 1 indicates an undervalued stock, raising questions about the company’s future prospects. A PBR over 1 suggests an overvalued stock, with the market price outpacing the book value. Hotel-focused REIT companies recorded a PBR of 1.09, implying potential overvaluation in May. By contrast, office building-focused REIT companies had a PBR of 0.93, indicating potential undervaluation. Meanwhile, the Tokyo Stock Exchange REIT index presented a relatively neutral PBR of 0.98.

The appeal of hotel-focused REITs to investors has been underpinned by the robust performance and heightened revenues in the hotel industry. As an industry metric to calculate the average revenue per room by dividing total room revenue by the total number of available rooms, Revenue Per Available Room (RevPAR) has seen a big jump. That surge has been due to a climbing occupancy rate in the hotels financed by two hotel-focused REIT companies, thus meeting investor expectations of profitability in the sector of hotel-related real estate. In March, Invincible Investment Corporation reported an impressive 10.8% increase in RevPAR, compared with the same month in 2019. Japan Hotel REIT also documented a 5.6% increase in RevPAR. Both companies have adopted a strategy of raising the room rate, effectively boosting their revenues. That increased revenues available for a higher dividend yield led to higher profits for shareholders.

In addition to macroeconomic elements such as the changing tourism trends in Japan’s economic nebulous landscape where the shadow of the Bank of Japan is looming to swoop in with potential interest rate hikes, investment decisions in the hospitality industry are swayed by the quality of properties within a hotel REIT's portfolio. Top-tier properties, boasting unique and refined characteristics tailored to each guest's preference or specific needs, stand a better chance of magnetizing new guests and securing repeat visitors. That is largely due to the tapestry of hospitality experience those properties provide, weaving an empathetic narrative steeped in rich culture and tradition. Such an experience tends to strike a chord with a guest’s emotional well-being, as the internal state of mind has a significant impact on the overall travel experience wherever the destination is. The guest is more likely to be blessed with unforgettable memories, feeling like savoring a rare vintage in a world dominated by mass-produced wines, overrun by efficiency-driven automated systems. That serves as a reminder of the importance of authenticity and local charm in an increasingly industrialized and globalized world, emphasizing the role of such elements in hospitality investment decisions.