SINGAPORE (Jan 16): OCBC Investment Research is maintaining “overweight” on Singapore’s hospitality sector as it sees value in some of the hospitality REITs under its coverage at their current unit prices.
OUE Hospitality Trust (OUE HT), Far East Hospitality Trust (FEHT) and Ascott Residence Trust (ART) are OCBC’s top “buy” picks with fair value estimates of 79 cents, 67.5 cents and $1.18, respectively.
The reiteration of OCBC’s sector weightage follows mixed industry-wide revenue per available room (RevPAR) performance in Oct and Nov 2018, which indicate that mid-tier hotels no longer seem to be outperforming their upscale counterparts, in the research house’s view.
