Brokers' take

Hospitality | NEUTRAL OCBC Investment Research, Oct 10

Singapore Tourism Board figures as well as feedback from industry sources suggest a somewhat flat quarter in terms of distribution per unit (DPU) growth for upscale and mid-tier hotels, with the latter outperforming the former. Meanwhile, there's no major change in outlook on serviced residences as demand is expected to remain soft amid the US-China trade tensions.

OUE Hospitality Trust (OUEHT) is our top pick after the recent rout, with OUEHT's unit price trading below book at about 0.9 times FY18 forecasted price/book ratio and a 7.3 per cent FY18F and 7.5 per cent FY19F dividend yield as at Oct 9's close.