OUE Hospitality Trust (OUEHT)

Re-rating time for OUE Hospitality Trust given price correction amid multi-year recovery

SINGAPORE (Jan 31): OUE Hospitality Trust (OUEHT), trading at 10% discount to book, should re-rate from its current levels after the 2H18 correction as the hospitality industry is in the midst of a multi-year recovery, says DBS Group Research.

See: OUE H-Trust posts 0.8% increase in 4Q DPS to 1.28 cents

Promising year ahead for OUE Hospitality Trust

SINGAPORE (Jan 31): OUE Hospitality Trust (OUEHT) on Tuesday saw a 6.6% drop in 4Q17 distribution per stapled security (DPS) to 1.27 cents from 1.36 cents a year ago.

This brings DPS for the full year to a record 5.14 cents, 11.5% higher than DPS of 4.61 cents a year ago.

The lower DPS during the quarter was attributed to the absence in income support for Crowne Plaza Changi Airport (CPCA) and higher interest expense, but partially offset by higher income received from hospitality and retail segments.

Singapore hospitality sector poised for a good 2018 ahead

SINGAPORE (Dec 1): OCBC Investment Research is maintaining a “neutral” rating on Singapore’s hospitality sector, given currently rich valuations.

For the four counters – Ascott Residence Trust (ART), Far East Hospitality Trust (FEHT), OUE Hospitality Trust (OUEHT) and CDL Hospitality Trust (CDLHT) – that the research house covers, 3Q17 y-o-y growth in hotel RevPAR ranged between –1.4% to 8.0%.

Meanwhile, Serviced Residences (SR) RevPAU – which is more dependent on corporate demand – fell 9.9% y-o-y for ART’s Singapore-based SR portfolios and 3.4% y-o-y for FEHT.

This hospitality REIT is a top pick amid ‘spectacular’ DPU growth

SINGAPORE (Aug 2): OCBC Investment Research is rating OUE Hospitality Trust (OUEHT) as its top pick among the hospitality REITs, after OUEHT on Tuesday posted a “blockbuster” 31.5% growth in distribution per unit (DPU).

OCBC is keeping its “buy” call on OUEHT with a higher fair value estimate of 82 cents, from 75 cents previously.

OUEHT saw distribution per stapled security (DPS) surge to 1.21 cent for the second quarter ended June, from 0.92 cents a year ago.

These 2 REITs could ride the long-awaited hospitality rebound

SINGAPORE (July 12): RHB Research expects Singapore’s hospitality sector to finally turn around in 2018, on the back of easing hotel supply, continued visitor arrival growth, and a pick-up in corporate activities.

“Singapore Hotel RevPAR (revenue per available room) has fallen by 12% from its peak and is now back to 2008 levels,” says RHB analyst Vijay Natarajan in a Wednesday report. “With supply pressures easing by end-2017, hoteliers are expected to see some respite.”

Hospitality REITs to face increased competition from private residences offering short-term rental

Village Residence Hougang SR by Far East Hospitality Trust

SINGAPORE (July 4): OCBC continues to remain “neutral” on Singapore’s hospitality sector given the recent compression in yields, while highlighting OUE Hospitality Trust (OUEHT) as its top and only “buy” pick with a fair value estimate of 75 cents.

This comes after the Urban Redevelopment Authority (URA) last Friday passed a new legislation that reduces the minimum stay duration for private residential properties to three months from six months previously, with immediate effect.

Hospitality REITs could get a reprieve

SINGAPORE (May 30): A delay in the expected launch of several hotels in the second quarter could help give hospitality REITs some breathing room amid declining revenue per available room (RevPAR), OCBC Investment Research says.

The opening of the hotels have been pushed back to late 2H17.

“With a better spaced out supply injection, we expect more evenly spread mid-single digit year-on-year declines in hotel RevPAR for the remaining three quarters of the year,” says lead analyst Deborah Ong in a Monday report.

Zika yet to draw blood from Singapore’s hospitality sector

SINGAPORE (Sept 6): OCBC Investment Research is maintaining its “neutral” stance on Singapore’s hospitality sector pending further information on the severity of Zika, with expectations that the impact of virus’s outbreak will be “much milder” than that of 2003’s severe acute respiratory syndrome (SARS) incident.

As of Sunday, the number of confirmed cases has risen to 242 from 41 cases on Aug 28.

“During the SARS episode, tourist arrivals fell 14.5% to 70.7% y-o-y in Mar to May 2013,” recalls lead analyst Deborah Ong in a Monday report.

Crowne Plaza Changi Airport increases capacity by 75% with new wing

SINGAPORE (Aug 1): Crowne Plaza Changi Airport (CPCA) on Monday opened its 10-storey extension, which will add 243 rooms to its existing 320 and increase total capacity by 75.9%.

Its current developer is OUE Hospitality Trust (OUEHT), which acquired the hotel and the extension from OUE in December 2014 for $290 million and $205 million respectively, bringing the total acquisition amount to $495 million. The hotel is run by InterContinental Hotels Group. 

The new wing took 18 months to complete and is projected to increase net property income (NPI) yield from 4.5% to 4.6%. 

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