OUE Limited and OUE Commercial REIT Management, the manager of OUE Commercial REIT (OUE C-REIT), have announced the reopening of the 446-room Orchard Wing at Hilton Singapore Orchard.
The property is the Hilton brand’s flagship hotel in Singapore and its largest in the Asia-Pacific. Following a 10-month renovation, the refurbished rooms and suites welcomed its first guests on Jan 1.
The reopening marks the end of the final phase of the asset enhancement initiative announced in March 2020. Hilton Singapore Orchard is now operating the full inventory of 1,080 rooms.
Since its relaunch with the 634-room Mandarin Wing in February 2022, demand for the refurbished rooms has been strong from corporate and leisure guests, says OUE in a Jan 3 press release. “Apart from drawing locals and visitors from Southeast Asia, the hotel also witnessed a significant increase in guests from North America.”
Consequently, the revenue per available room (RevPAR) for the 3QFY2022 ended Sept 31, 2022 increased 10.2% q-o-q to $332 and surpassed the previous RevPARs of the property before its rebranding.
“The opening of the Orchard Wing brings the rebranding and rejuvenation of the hotel to a timely completion,” says Brian Riady, deputy chief executive officer and executive director of OUE. “Now operating at full room capacity, Hilton Singapore Orchard is set to further capitalise on the continued recovery in travel demand in both the business and leisure sectors.”
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Han Khim Siew, CEO and executive director of the manager, says: “International visitor arrivals have been growing and are expected to increase in 2023 with the potential return of Chinese and Japanese visitors.”
The ongoing recovery in the hospitality sector will also be supported by a healthy pipeline of MICE events in 2023 and new tourism offerings, he adds, which will reinforce Singapore’s top global destination and commercial hub status and benefit Hilton Singapore Orchard.
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Han, who took up the CEO post in February 2022, is confident that Hilton Singapore Orchard will surpass the minimum rent of $45.0 million p.a. with the full 1,080 rooms inventory available in 2023.
OUE is the manager of two Singapore Exchange-listed REITs: OUE C-REIT and First REIT. As at June 30, 2022, OUE managed $7.8 billion in funds under management across its two REIT platforms and its managed accounts.
OUE is the controlling shareholder of OUE Lippo Healthcare Limited, an SGX-listed, integrated healthcare services provider that owns, operates and invests in healthcare assets in Asia.
OUE C-REIT is one of the largest diversified Singapore REITs with total assets of $5.8 billion as at June 30, 2022. With seven properties across the commercial and hospitality segments in Singapore and Shanghai, OUE C-REIT’s property portfolio comprises approximately 2.2 million sq ft of prime office and retail space, and 1,643 upper upscale hotel rooms.
