OUE HOSPITALITY TRUST

OUE HOSPITALITY TRUST | BUY

MAY 3 CLOSE: $0.81

TARGET PRICE: $0.95

RHB, May 3

OUEHT posted a strong all-round performance, with healthy revenue per available room growth for its hotels and a higher occupancy rate at its retail mall.

We expect this trend to continue in 2018, with the limited supply of new hotels and continued momentum in visitor demand.

Corporate demand is also expected to trend higher, on the back of more MICE events and a positive economic growth outlook.

With borrowing costs inching higher, OUEHT's refinancing of all its debts at the beginning of the year has proven timely.

Dividend yields are compelling, with FY18F-19F dividend yields at 6.5 per cent and 7 per cent, respectively.

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