Brokers' take
Singapore Hospitality | Neutral
OCBC Investment Research, Nov 21
For the hospitality counters we cover, Q3 2016 DPU growth ranged from -2.5 per cent to -7.4 per cent year on year, after adjusting for one-off items and equity financing. Looking ahead to FY2017, with a forecast 6.1 per cent growth in hotel rooms and tepid economic growth outlook, RevPARs (hotel revenue per available room) are expected to continue their decline, in our view, and especially so for hotels that rely on corporate demand. RevPARs are only expected to improve in FY2018 with better supply-demand dynamics. While we expect single-digit RevPAR declines next year, current price levels look very attractive for some of the Reits under our coverage - we are positive on Ascott Residence Trust, CDL Hospitality Trust, OUE Hospitality Trust.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Westpac net profit falls 16%, announces additional A$1 billion buyback
Worst days for China’s stock market may be over
Emerging-market optimism dashed by Fed as currencies, bonds sink
LHN warns H1 2024 net profit could decline by 28.6%
It is time to put idle cash back into the market
Gauging sentiment is crucial, and there are hard and easy ways to do it