Far East Hospitality Trust reported on Wednesday earnings that were below its earlier forecasts due to weaker-than-expected performance by its hotels in Singapore.
- PHOTOS
File photo of Orchard Parade Hotel, which is owned by Far East Hospitality Trust. (Photo: Far East Hospitality Trust)
SINGAPORE: Far East Hospitality Trust reported on Wednesday earnings that were below its earlier forecasts due to weaker-than-expected performance by its hotels in Singapore.
The trust said gross revenue from its eight hotels in Singapore amounted to S$33.56 million in the fourth quarter of last year — some 3 percent lower than what it had forecast.
Its average room rate during the quarter was S$193.70 a night — 8.9 percent below the forecast of S$212.60.
As a result of that, Far East, whose properties include the Orchard Parade and Rendezvous hotels, will distribute 1.42 cents per stapled security for the quarter instead of the 1.45 cents it had indicated earlier.
Far East was, however, positive about the outlook.
This is because visitor arrival is likely to rise this year due to the staging of major biennial events such as the Singapore Airshow and the Food and Hotel Asia exhibition.
New tourism infrastructure such as the Singapore Sports Hub will also bring more world-class sporting events and visitors to Singapore.
As such, the approximately 3,100 new hotel rooms that will be added to the local market, a rise of 5.9 percent, is likely to be well absorbed, Far East said.
- CNA/xq
Far East Hospitality misses targets as hotel room rates fall
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