OUE HT receives blows from weaker tourist arrivals

Mandarin Orchard’s accelerated renovation didn’t help, either.

OUE Hospitality Trust is fine with last quarter’s 1.5% revenue dip to $28.3 million due to seasonally weaker tourist arrivals and accelerated renovation at Mandarin Orchard Singapore, as it is currently preparing MOS for a seasonally stronger demand in 2H14.

Maybank Kim Eng reports that MOS’s newly renovated guestrooms will command better rates and some 85% of Mandarin Gallery leases by gross rent will expire in the next two years. Maybank expects positive reversions, given a limited supply of retail space along Orchard Road.

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