Frasers Hospitality Trust - Maybank Kim Eng 2020-11-02: Easing Out To Growth?

FRASERS HOSPITALITY TRUST (SGX:ACV) | SGinvestors.io FRASERS HOSPITALITY TRUST (SGX:ACV)

Frasers Hospitality Trust - Easing Out To Growth?


RevPAR on a mend but demand visibility weak



Singapore RevPAR bottoming out

  • Frasers Hospitality Trust's Singapore portfolio (at 35.5% of AUM), recorded stable occupancy of 79.0% in 4Q20 (from 80.2% in 3Q20), as the expiry of isolation demand at the Intercontinental in Sep was partly mitigated by stronger bookings at Fraser Suites, where occupancy jumped q-o-q from 57.3% to 81.7%, driven by long-stays that contributed 60% of bookings.
  • Frasers Hospitality Trust's RevPAR fell 59.0% y-o-y but rose 3.8% q-o-q to S$112 on the back of lower ADRs, down 52.2% y-o-y, but up 6.8 q-o-q. We expect staycation demand to gain traction in FY21, to further support recovery in RevPAR.


Long-stays in Australia, lockdowns in UK

  • RevPAR for Frasers Hospitality Trust's Australian portfolio (32.3% of AUM) declined 78.5% y-o-y and 10.9% q-o-q to AUD41 in 4Q20 on the back of lower occupancy, which fell y-o-y by 51.2ppts but rose q-o-q from 32.6% to 35.0%, as Sofitel Sydney and Novotel Melbourne secured additional contracts for isolation stays.
  • We see improving demand and RevPAR into FY21, underpinned by a gradual recovery in domestic travel and as Melbourne exits from its lockdown.
  • Frasers Hospitality Trust's UK occupancy was weak at 25.9% as four of its five properties reopened after a government-imposed mandatory closure in 3Q20, but could be further dampened by a second month-long lockdown from 5 Nov.

Balance sheet sound






Chua Su Tye Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2020-11-02
SGX Stock Analyst Report HOLD MAINTAIN HOLD 0.40 DOWN 0.450



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