SINGAPORE (May 9): DBS Vickers Securities is maintaining its ‘buy’ call on OUE Hospitality Trust (OUEHT) with a 75 cents target price.

“We believe OUEHT is one of the best-positioned hospitality REITs to ride out the near term headwinds in the Singapore hospitality market as demonstrated by the 1% y-o-y increase in RevPAR in 1Q16,” says lead analyst Mervin Song in a Monday report.

Song says this is due to the “superior” location of its properties. Mandarin Orchard is located in the heart of Orchard Road, which will not see any major new hotel this year while Crown Plaza Changi Airport and its upcoming extension is the only hotel within the Changi Airport submarket and well placed to take advantage of the roughly 72% expansion of Changi Airport’s passenger capacity.

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