Far East Hospitality Trust (FEHT) posted lower revenue and earnings for the fourth quarter of 2014, hurt by lower occupancy and room rates at its hotels and serviced residences in Singapore.
FEHT, whose properties include the Rendezvous and Orchard Parade hotels, said on Wednesday (Feb 11) that it recorded gross revenue of S$30.3 million for the quarter – a drop of 9.8 per cent compared to the same period a year ago. The property trust will distribute 1.28 Singapore cents per stapled security for the last three months of 2014 compared to 1.42 Singapore cents for the same period in 2013.
Looking ahead, FEHT said the softness in corporate travel amid the uncertain economic environment could continue to weigh on the demand for accommodation. This weakness could, however, be partially mitigated by the hosting of major events such as 2015 Southeast Asian Games, the opening of new and diverse attractions such as Singapore Pinacothèque de Paris and the National Gallery Singapore.
“While there seemed to be some moderation in the decline in the Chinese arrivals in the recent months, it may take a while before visitorship from China returns to its previous level,” the property trust added.
According to the Singapore Tourism Board (STB), international visitor arrivals to Singapore fell 3.1 per cent year-on-year in 2014.
The contributing factors included a sharp decrease in arrivals from China, which dropped 24 per cent, and the strong Singapore dollar, which hurt leisure traffic from some regional countries.
FEHT reported an average occupancy rate of 82.4 per cent for its hotels during the fourth quarter of last year, down from 86.0 per cent in the last three months of 2013. Its average daily room rate during this period was S$186, down from S$193 in the year-ago period.
Source : Channel NewsAsia – 11 Feb 2015