Average daily rate also declined, offsetting the occupancy gain.
Far East Hospitality's losing streak in terms of RevPar continued in the past quarter, resulting in a 5.3% decline to $139 for the whole year.
According to OCBC Investment Research this came as average daily rate dropped 7% to $159, offsetting the 1.6ppt gain in occupancy to 87%.
"FY16 Serviced Residences (SR) RevPAU dropped 5.8% to S$146, affected by both a 3.6% decline in ADR and a 2.0ppt drop in occupancy to 85.0%," the brokerage firm noted.
In 4Q16, there was a 7.3% decline in hotel RevPar to S$136, but a smaller 2.3% drop in SR RevPAU to S$146.
"We note that in 4Q16, the decrease in revenue contribution from Banking & Finance and Services was partially offset by a growth in Oil & Gas and Electronics & Manufacturing. The management emphasized that its SRs are seeking a more diverse base of long-term tenants," OCBC said.
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