SINGAPORE - The improvements in the tourism sector plus the addition of Oasia Hotel Downtown to its portfolio lifted Singapore-focused hospitality owner Far East Hospitality Trust (Far East H-Trust) for its third quarter.

Distribution per stapled security (DPS) crept up 1.9 per cent to 1.05 cents from 1.03 cents in the year-ago period, the group said in a Singapore Exchange filing on Tuesday morning (Oct 30).

Distribution payment will be made on Dec 13, after books closure on Nov 8.

Q3 income available for distribution grew 4.8 per cent to $20.1 million from the year-ago period. For the three months ended Sept 30, gross revenue grew 11.1 per cent to $30.5 million from the previous year. Net property income grew 11.8 per cent to $27.7 million from the previous year.

For its nine hotels, revenue per available room (RevPAR) grew 6.6 per cent to $152 for the quarter. Average daily rates (ADR) and occupancy rose 5.1 per cent to $168, and 1.3 percentage points to 90.7 per cent, respectively.

Besides the addition of Oasia Hotel Downtown, and the improvement post renovation and rebranding of its Orchard Rendezvous Hotel (formerly known as Orchard Parade Hotel) he company said there was also "an uptick in overall market demand on the broader front".

Meanwhile, its four serviced residences continued to be challenged. Revenue per available unit (RevPAU) of its serviced residences fell 5.4 per cent to $186 for Q3, and average occupancy and ADR were 1.8 percentage points lower at 87.2 per cent, and 3.4 per cent lower at $213 year on year respectively.

Revenue from the retail and office spaces slipped slightly by 0.8 per cent to $5.5 million.

The company saw finance costs also rise to $7.2 million, mostly due to the additional loan drawn down to fund the purchase of Oasia Hotel Downtown, and higher short-term interest rates.

"The operating environment for hotels in Singapore continues to trend in a positive direction," the company said in its announcement. "Nonetheless, corporate travel demand is subject to wider global and economic factors."

Meanwhile, the long-stay market continues to be hit by factors such as room rate pressure from corporate accounts, a tight foreign labour policy and a greater availability of home-sharing options.

Far East H-Trust is a stapled security comprising Far East Hospitality Real Estate Investment Trust (Far East H-Reit) and Far East Hospitality Business Trust (Far East H-BT). The latter is currently dormant.

Far East H-Trust units finished half a cent higher, or 0.83 per cent, at $0.605 on Monday.