Brokers' take

Singapore Hospitality | Overweight (maintained) OCBC Investment Research, March 5

Year-to-date, all four hospitality Reits under our coverage have posted positive total returns till March 4's close: CDL Hospitality Trusts (CDLHT) is up 14.4 per cent, OUE Hospitality Trust (OUEHT) is up 10.9 per cent, Ascott Residence Trust (ART) is up 10.1 per cent, and Far East Hospitality Trust (FEHT) is up 9.1 per cent. This compares to total returns of 6.1 per cent from the Straits Times Index over the same period.

OUEHT is still trading at a discount to peers, but we believe that it is now more likely that OUEHT will acquire sponsor's asset Oakwood Premier within the year, based on an updated assessment of how well the asset has stabilised.