Although OCBC analyst Deborah Ong believes that OUEHT’s current unit prices are not attractive enough to warrant a “buy” call, it remains most positive on the REIT relative to other hospitality REITs under its coverage given the momentum from its recent RevPAR outperformance at Mandarin Orchard Singapore (MOS), the longer-term prospects for CPCA with Changi Airport’s Terminal 4 and 5, and the REIT’s 100% Singapore exposure when local hotel room supply injection dries up in 2018.
SINGAPORE (Nov 21): Passenger movements at Changi Airport continue to climb, registering 7.5% y-o-y growth in Sept and a 5.9% y-o-y growth for 9M17.
The increase bodes well for OUE Hospitality Trust’s Crowne Plaza Changi Airport (CPCA), which is currently only receiving minimum rent.
