- Far East Hospitality Trust (SGX:Q5T)'s hotels RevPAR doubled y-o-y in 3Q22.
- Serviced residences RevPAU surpassed pre-COVID levels.
- 3 hotels remained on government isolation business.
Far East Hospitality Trust's 3Q22 business update
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- Excluding the impact of divestment, revenue for the serviced residences and commercial premises would have grown 44.9% and 19.1% y-o-y respectively in 3Q22.
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Hotels’ RevPAR recovered to ~70% of pre-COVID levels in 3Q22
- Occupancy rate for hotels declined 3.1 percentage points (ppt) y-o-y to 76.1% in 3Q22, due to the cessation of government contracts for some hotels and the closure of the Elizabeth Hotel for renovation, which has since reopened as the Vibe Hotel Singapore Orchard in early Sep 2022. Averaged door rate (ADR) rose 107.6% y-o-y to S$137 due to higher room rates from remaining government contracts and improved room rates from corporate guests.
- Far East Hospitality Trust also managed to charge higher room rates during the F1 event period. Consequently, RevPAR doubled y-o-y to S$105, recovering to ~70% of pre-COVID levels. On a q-o-q basis, hotels’ RevPAR grew 40%.
- 4 of Far East Hospitality Trust’s nine hotels remained under government contracts with existing contracts expiring between Dec 2022 and Jan 2023.
- Overall, the hotel segment continued to collect fixed rent in 3Q22. However, we note from Far East Hospitality Trust's management that one of the hotels was able to receive variable income in 3Q22 and could see the momentum continuing in 4Q22, together with the recovery in other hotels.
Strong demand from corporate guests drove the uplift in SRs RevPAU
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