The weakest link: Hospitality REITs grapple with mounting downside pressure in 2015

They have the highest proportion of maturing debt.

Fitch Ratings today said that expects hospitality REITs to face more downside risks than other sectors.

Tourist arrivals into Singapore are likely to remain weak in 2015, due to softer economic growth in China and higher inflation in Indonesia - two key inbound markets. 

Tourist arrivals in Singapore contracted by 3% in January-August 2014 compared with the same period in 2013. In addition, the supply of hotel rooms in Singapore is set to increase by 6% in 2015, according to industry data. 

The hospitality sector is the most exposed to refinancing and interest rate risks in 2015, by virtue of having the highest portion of maturing debt during the year and the lowest proportion of fixed-rate debt.