Far East Hospitality to tap ASEAN tourism growth

Hotel and serviced residence owner Far East Hospitality Trust aims to tap South-east Asia’s booming tourism demand and grow its portfolio value by 50 per cent over the next two years.

Far East Hospitality expects to acquire a hotel and two serviced residences – Orchard Parksuites and Orchard Scotts Residences – from its sponsor Far East Organisation within the next 24 months, increasing its portfolio by more than S$1 billion from S$2.1 billion currently, CEO Gerald Lee said.

The trust, which owns 11 Singapore properties, raised S$717.6 million ($583.8 million) last month in its initial public offering that was the largest in the city-state this year and attracted strong interest from investors due to its yields and exposure to Singapore’s tourism industry.

“We’re seeing countries like Indonesia and the Philippines opening up and seeing healthy economic growth … that will help to drive business travel,” Mr Lee told Reuters.

Singapore real estate investment trusts have risen 27.5 per cent this year, driven by demand for stable yields and income in a broader market that saw the Straits Times Index gain 14.4 per cent.

Source : Today – 13 Sep 2012

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