OCBC says a coming supply of hotel rooms in a subdued macro economic environment will be a challenge for existing operators, after OUE Hospitality Trust reported a 4.5% year-on-year fall in its distribution per unit.
OUE Hospitality reported fourth quarter distribution per unit of 1.70 cents, compared to 1.78 cents in the same quarter of the previous year. The decline was mainly because of a higher unit base, while revenue increased 8.6% to $33 million.
“We believe the industry prospects remain challenging, given the subdued macroeconomic environment and competitive pressures from an expected increase in supply of new hotel rooms," OCBC says.
The house keeps its hold recommendation and $0.80 fair value estimate on OUE Hospitality Trust.
OUE-HT close 0.67% higher at 75 cents on Tuesday.
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OUE Hospitality reported fourth quarter distribution per unit of 1.70 cents, compared to 1.78 cents in the same quarter of the previous year. The decline was mainly because of a higher unit base, while revenue increased 8.6% to $33 million.
“We believe the industry prospects remain challenging, given the subdued macroeconomic environment and competitive pressures from an expected increase in supply of new hotel rooms," OCBC says.
The house keeps its hold recommendation and $0.80 fair value estimate on OUE Hospitality Trust.
OUE-HT close 0.67% higher at 75 cents on Tuesday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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