Home Capital Broker's Calls

Road ahead for OUE Hospitality Trust turns challenging

Michelle Zhu
Michelle Zhu11/1/2016 12:49 PM GMT+08  • 2 min read
Road ahead for OUE Hospitality Trust turns challenging
SINGAPORE (Nov 1): RHB is downgrading its view on OUE Hospitality Trust (OUE HT) from “buy” to “neutral”, while lowering its target price to 70 cents from 75 cents previously to reflect distribution per unit (DPU) dilution arising from its 1-for-3
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Nov 1): RHB is downgrading its view on OUE Hospitality Trust (OUE HT) from “buy” to “neutral”, while lowering its target price to 70 cents from 75 cents previously to reflect distribution per unit (DPU) dilution arising from its 1-for-3 rights issue in April and acquisition of Crowne Plaza Changi Airport (CPEX) in August.

(See also: OUE Hospitality Trust’s 3Q DPS falls 28.5% to 1.23 cents on lower retail revenue)

In a Tuesday report, analyst Vijay Natarajan foresees the trust’s hotel revenue per available room (RevPAR) being negatively impacted by weakening corporate demand amid competitive pressures, which stem from incoming hotel supply.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now