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In Singapore, Asians has accounted for 74 percent of OUEHT’s Mandarin Orchard Singapore profile in 1H 2014, with arrivals from Asia increasing by 16.7 percent in July, according to an OSK-DMG report.
In 2H 2014, OUEHT is expected to benefit from a seasonally higher hospitality demand, since a check on the preliminary statistics by Singapore Tourism Board (STB) indicated an improved outlook in July, the report noted.
Specifically, OUEHT’s RevPAR climbed 5.4 percent month-on-month to S$223.4, while average occupancy rate rose from 84.9 percent in June to 90 percent in July.
In 2Q 2014, OUEHT’s NPI and income available for distribution stood at S$25.2 million and S$21.1 million respectively, up 1.2 percent and 2.5 percent from its respective prospectus forecasts.
DPU for the quarter also stood 2.5 percent above forecast at 1.64 Singapore cents.
“For 1H 2014, DPU amounted to 3.32 Singapore cents, meeting 49.5 percent of our full-year distribution projection,” said the report.
While RevPAR for Q2 missed its prospectus forecast of S$258, “we understand that this was partly due to the accelerated renovation schedule in the quarter to capture the expected uptick in hospitality demand in 2H,” it added.
As at July, 160 of the trust’s 430 guestrooms have completed refurbishments.
OSK-DMG believes that this would “allow OUEHT to leverage on the newly renovated rooms to attract customers seeking a premium accommodation in Orchard Road area.”
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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