OUE Reit sees boost in hospitality segment, completes purchase of stake in Sydney commercial tower

Atiqah Mokhtar

/ EdgeProp Singapore

April 22, 2026 10:27 AM SGT

propertyeditor@edgeprop.sg

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OUR Reit reported higher revenue per available room in 1Q2026 for its hospitality assets, which include the 1,080-room Hilton Singapore Orchard (Picture: Hilton)

OUE Reit’s hospitality segment received a boost in 1Q2026, as events such as the Singapore Airshow and and the maiden voyage of cruise ship Disney Adventure, supported revenues at its two hospitality assets – the 1,080-room Hilton Singapore Orchard and the 575 Crowne Plaza Changi Airport.

OUE Reit reported $26.8 million in hospitality segment revenue for 1Q2026, 15.1% higher than the $23.3 million recorded in the same quarter last year. Net property income (NPI) for the segment also grew, jumping 16.8% from $20.8 million in 1Q2025 to $24.3 million in 1Q026.

The Reit’s manager also attributes the stronger performance of its hospitality portfolio to “proactive revenue management and refreshed offerings”. At the same time, stable corporate bookings helped bolster revenue per average room (RevPAR) at Crowne Plaza Changi Airport. Overall, OUE Reit’s hospitality segment saw an 11.7% increase in RevPAR to 11.7% in 1Q2026.

Improvements in the segment helped propel OUE Reit’s overall performance last quarter. For 1Q2026, the Reit reported an NPI of $57.6 million, 8.4% higher y-o-y, supported by higher revenue of $70.5 million, up 6.7% y-o-y.

In addition to the stronger hospitality performance, OUE Reit notes that its commercial portfolio remains resilient, with a committed occupancy of 95.2% as of March 31, and a positive rental reversion of 6% in 1Q2026. Average passing rent rose 0.2% q-o-q to $11 psf per month.

In March, the Reit completed its acquisition of a 19.9% interest in 180 George Street, a commercial tower with office and retail space in Sydney, Australia, for A$357.2 million ($319.8 million). The 55-storey building, also known as Salesforce Tower, has an occupancy of 99.2% as of March 31.

The acquisition brings the OUE Reit’s commercial portfolio to five assets, with the other four being Singapore developments consisting of OUE Bayfront, One Raffles Place, OUE Downtown Office and Mandarin Gallery.

In Singapore, OUE Bayfront obtained planning approval in March to convert its 17th floor, which currently houses a chiller system, into office space spanning over 22,600 sq ft. The conversion is expected to be completed in 2027. At a cost of approximately $43 million, the space conversion is expected to generate a stabilised return on investment exceeding 11%.

Meanwhile, Mandarin Gallery, the Reit’s mall on Orchard Road, recorded a position rental reversion of 3.8% in 1Q2026. Average passing rent increased by 2.4% q-o-q to $22.98 psf per month, while committed occupancy stood at 95.6% as of March 31.

“Looking ahead, our portfolio fundamentals remain resilient, underpinned by the continued attractiveness of Singapore and Sydney as safe haven markets amid heightened global uncertainty,” says Han Khim Siew, CEO of OUE Reit’s manager.

The Reit expects hospitality demand to remain supported by Singapore’s lineup of events and major concerts, alongside the emergence of new live entertainment venues such as Live Nation’s Grange Road Events space. At the same time, supply remains stable, with no significant new hotel openings along Orchard Road.

The Reit says it will continue to employ proactive revenue management, targeted marketing collaborations and curated guest experiences that leverage Singapore’s event and entertainment calendar.

In the commercial segment, Singapore’s office market conditions are expected remain “landlord favourable”, backed by strong market fundamentals, including limited new completions in the near term

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OUE Reit sees boost in hospitality segment, completes purchase of stake in Sydney commercial tower

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