Far East Hospitality Trust (FEHT) has announced a distribution per stapled security of 1.17 cents in the fourth quarter ended Dec 31, 2015, from 1.28 cents a year ago.
Net property income fell 4.9% to $26.3 million from $27.7 million previously.
FEHT says corporate travel remained soft last year as companies scaled back on their travel budgets in view of the uncertain economic outlook.
The trust also faced competition from new and existing hotels, it adds.
As a result, the revenue per available room of its hotel portfolio fell 4.4% year-on-year to $146 in 4Q2015, mainly due to a 7.6% y-o-y decrease in the average daily rate (ADR).
The average occupancy and ADR of the serviced residence portfolio declined 0.6 percentage point and 12.8% y-o-y respectively, pushing down revenue per available unit by 13.5% y-o-y to $180 in 4Q2015.
Going forward, FEHT reckons that corporate travel may continue to remain soft and weigh on the demand for accommodation.
Furthermore, new inventory of about 2,700 hotel rooms, which are expected to come on stream this year, could further intensify the competitive landscape of the hospitality market.
FEHT has embarked on several asset enhancement programmes, which will be carried through this year, to improve the quality and competitiveness of its properties.
FEHT ended lower yesterday at 63 cents.
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Net property income fell 4.9% to $26.3 million from $27.7 million previously.
FEHT says corporate travel remained soft last year as companies scaled back on their travel budgets in view of the uncertain economic outlook.
The trust also faced competition from new and existing hotels, it adds.
As a result, the revenue per available room of its hotel portfolio fell 4.4% year-on-year to $146 in 4Q2015, mainly due to a 7.6% y-o-y decrease in the average daily rate (ADR).
The average occupancy and ADR of the serviced residence portfolio declined 0.6 percentage point and 12.8% y-o-y respectively, pushing down revenue per available unit by 13.5% y-o-y to $180 in 4Q2015.
Going forward, FEHT reckons that corporate travel may continue to remain soft and weigh on the demand for accommodation.
Furthermore, new inventory of about 2,700 hotel rooms, which are expected to come on stream this year, could further intensify the competitive landscape of the hospitality market.
FEHT has embarked on several asset enhancement programmes, which will be carried through this year, to improve the quality and competitiveness of its properties.
FEHT ended lower yesterday at 63 cents.
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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