SINGAPORE (Nov 20): OCBC is lowering its fair value estimate of OUE Hospitality Trust from 88 cents to 80 cents while keeping its 'hold' recommendation as Singapore's hospitality sector outlook looks set to remain muted.

Visitor arrivals from Indonesia to Singapore continue to be lacklustre, dipping 9.2% y-o-y for the month of Sep. This has culminated in an overall 11 % decline in Indonesian tourist arrivals to 2 million from Jan-Sep this year, with only one month of positive y-o-y increase recorded in July.

In a Friday note, lead analyst Andy Wong Teck Ching says OUE-HT has been impacted partially by this, as he believes Indonesian tourists contribute about 25%-30% of its room nights occupied.

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