In 1QFY2023, the group opened four hotels with more than 500 rooms. This includes the debut of Adina Apartment Hotel Geneva, and a third hotel in Japan, a 134-key Far East Village Hotel Tokyo, Asakusa. With the opening of Adina Geneva, the European portfolio which is operative via a joint-venture, owns and/ or operates 18 hotels with over 2,700 keys. Two new hotels in Australia and Malaysia are expected to be opened in the second half of the year.

As at March 31, 2023, Far East Orchard’s somewhat volatile hospitality division owns and/or operates 16,500 rooms with close to 100 properties in 10 countries – Australia, Austria, Denmark, Germany, Hungary, Japan, Malaysia, New Zealand, Singapore and Switzerland - in partnership with a couple of partners.

The International Air Travel Association (IATA) reported that total traffic increased 55.5% in February 2023 year-on-year, particularly in the Asia-Pacific region, and has maintained a positive momentum since the lifting of travel restrictions. On the flip side, geopolitical tensions, an economic slowdown, flight capacity and the availability of labour could stymie the pace of recovery in travel.

Far East Orchard’s more stable UK purpose-built student housing (PBSA) portfolio comprises more than 3,500 beds in Brighton, Bristol, Leeds, Liverpool, Newcastle upon Tyne and Sheffield. In 2022, Far East Orchard acquired two PBSA properties, a 690-bed development site at Bristol and a 180-bed property at Southampton. Upon the completion of the development site at Bristol and the acquisition of the Southampton property, it would bring Far East Orchard’s PBSA portfolio to more than 4,400 beds across 14 properties in the UK.

The outlook for the UK PBSA sector is underpinned by demographic growth, high application rates and increasing international students. The Universities and Colleges Admission Service (UCAS) reported that over the past five years, the number of UK 18-year-old applicants has risen by 17.4%, and it anticipates this upward trajectory will continue over the remainder of the decade.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/vicplas-reports-521-lower-profit-after-tax-42-mil-fy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Vicplas reports 52.1% lower profit after tax of $4.2 mil for FY2023</a></b></span>

As at March 31, the UK PBSA portfolio has seen reservations for the academic year beginning September 2023 of close to 90%, surpassing the prior year’s reservations at this point in time of 80% and with continued rental growth.

Shares in Far East Orchard closed flat at $1.05 on May 5.

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