FAR East Hospitality Trust : Q5T 0% (FEHT) posted a 24.1 per cent increase in distributable income to S$18.2 million for the first quarter of FY2023, from S$14.7 million the previous year. 

This was driven mainly by a 20.1 per cent rise in gross revenue to S$25.2 million, from S$21 million previously. 

The higher gross revenue was led by growth from its hotel segment, which increased 29.6 per cent to S$18.5 million, said FEHT’s managers on Friday (Apr 28). 

Revenue from FEHT’s commercial premises segment was up 5.9 per cent on the year, while its serviced residences segment posted a 7.8 cent fall in revenue. 

Net property income grew 24.4 per cent to S$23.7 million, from S$19 million.

For FEHT’s hotel portfolio, average occupancy rose 14.2 percentage points to 81.9 per cent for Q1 on robust demand from leisure travellers, said its managers. 

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The average daily rate (ADR) increased 89.3 per cent to S$165. 

“The newly rebranded Vibe Hotel Singapore Orchard and higher contracted rates for the remaining hotels contracted to the government also lifted ADR,” noted the managers. 

Consequently, the revenue per available room climbed 129.2 per cent to S$135.

The managers noted that its serviced residences continued to benefit from higher ADR across its portfolio, especially from the rebranded Adina Serviced Apartments Singapore Orchard. 

The average occupancy of the serviced residences increased marginally by 0.5 percentage point to 87.1 per cent, and ADR grew 27.8 per cent to S$257. 

The managers expect more properties within FEHT’s portfolio to perform above fixed rents and achieve variable rents on the back of further improvements to visitor arrivals into Singapore. 

In the medium term, the managers anticipate that new foreign investments will drive demand for accommodation from corporate travellers and project groups.

Stapled securities of FEHT closed down S$0.005 or 0.8 per cent at S$0.61 on Thursday.