It's all doom and gloom for struggling hospitality REITs

Overseas income won't pick up the domestic slack.

The next twelve months will be particularly difficult for Singapore-listed hospitality REITs, according to a report by Fitch Ratings.

"[We] expect visitor arrivals into Singapore to remain weak during the next 12-18 months because of slower economic growth in key inbound markets such as China, Indonesia and Malaysia," said Fitch.

Apart from persistently weak visitor arrivals in Singapore, hospitality REITs will also suffer from weak income in several other markets such as Australia and New Zealand.

"Australia and New Zealand accounted for a further 27% of sector income, with most Australian properties outside Sydney performing poorly on the back of a weak mining sector," said Fitch.