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ARA H-Trust posts Q3 gross revenue of US$20.4m amid portfolio recovery

ARA US Hospitality Trust (ARA H-Trust) on Friday posted gross revenue of US$20.4 million for the third quarter, more than double the US$7.6 million reported in Q2.

This comes amid portfolio recovery backed by reopening and weekend leisure travel in the US.

Gross operating profit came in at US$3.9 million, reversing from a loss of US$2.3 million the previous quarter, according to a business and operational update.

Net property income narrowed to negative US$1.3 million, from negative US$5.6 million in the second quarter.

The manager said all 41 hotels in the stapled group's portfolio are open and operational as at July 1. Extended-stay properties continued to demonstrate resilience and commanded a premium in occupancy and revenue per available room (revPAR).

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The Marriott portfolio continued to outperform the US upscale hotel segment, bringing in revPAR of US$50, up 35.1 per cent on the quarter. The Hyatt portfolio, meanwhile, brought in revPAR of US$38, up 65.2 per cent quarter on quarter.

ARA H-Trust has adequate liquidity with US$19.6 million cash on hand, the manager noted. It continues to defer non-essential capital expenditure to conserve liquidity and has also obtained commitment from banks for an additional US$10 million revolving facility.

The stapled group's aggregate leverage ratio stood at 43 per cent, while weighted average debt maturity was at 3.3 years as at Sept 30, 2020.

Looking ahead, the manager said recovery pace for ARA H-Trust is dependent on a shift to corporate travel and beyond. It will undertake a three-pronged strategy for long-term value creation - proactive asset management, prudent capital management, and yield-accretive investment management.

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