News

Reopening borders and hotel contracts will improve distribution yield.   The distribution yield of Far East Hospitality Trust (FEHT), a real estate investment trust, could improve by 5.7% in 2023, triggered by rapid opening of international borders last month as well as redeployed hotel contracts, investment banking firm, UOB KayHian, said.   In its report, UOB KayHian bared that there are three hotels under government contracts that were redeployed, which will serve business and leisure travellers in the first quarter of 2022 (Q1 2022).   UOB KayHian also reported hotel stability from fixed rents and an unchanged hotel revenue at $14.3m.   However, occupancy for hotels went down 8.2 percentage points, on a yearly basis, to 67.7% in Q1 2022 which stemmed from the ending of government contracts of three hotels, which will be used for isolation purposes. These hotels are Village Hotel Albert Court, Quincy Hotel and Elizabeth Hotel.   To date, FEHT has only three out of its nine hotels on government contracts whilst the remaining three government contracts were extended by two to three months until the middle of 2022.