While overall revenue per available room (RevPAR) grew 2.7% y-o-y in January on a 3% increase in average room rates (ARR), Ong points out that this was attributable to a substantial 14.5% increase from the luxury segment according to the Singapore Tourism Board’s (STB) hotel tiers.
SINGAPORE (March 28): OCBC Investment Research is maintaining its “neutral” call on Singapore’s hospitality sector with OUE Hospitality Trust (OUE HT) as its top and only “buy” pick in the Singapore REITs space at a fair value of 75 cents.
CDL Hospitality Trusts (CD REIT), Far East Hospitality Trust (FEHT) and Ascott REIT (ART) have been rated “hold” at fair value estimates of $1.46, 60 cents and $1.105 respectively.
In a Tuesday report, lead analyst Deborah Ong notes that Jan 2017’s total tourist arrivals to Singapore would have decreased 1.5% y-o-y if not for double-digit growth in Chinese arrivals, which jumped 38.2% as Indonesian arrivals increased 1.9%.
