OUE Hospitality Trust to benefit from Changi's expansion

Changi Airport is expected to handle 60 million passengers this year.

OUE Hospitality Trust is well-positioned to benefit from Changi Airport’s expansion plans and successes due to its enlarged Crowne Plaza Changi Airport.

According to OCBC Investment Research, Changi Airport Group (CAG) traffic numbers, passenger movements were up 7.8% in Apr, 4.3%YoY in Mar, 1.5% in Feb, and 8.2% YoY in Jan this year.

"At the end of May, CAG announced that more than 1b passengers have passed through the airport and that it is set to handle a record 60m passengers this year," it said.

The brokerage firm added, "CAG also recently revealed that it has awarded all concession contracts for retail, F&B and service outlets at its new Terminal 4, which is expected to open in 2H17."

In the upcoming year, OCBC Investment Research said they expect Crowne Plaza Changi Airport to benefit from the greater passenger traffic as well as the opening of Terminal 4.

"Down the line, the scheduled opening of Jewel Changi Airport in early 2019 is expected to further increase the attractiveness of staying at the asset," the brokerage firm said.