ARA H-Trust Q1 net property income jumps to US$5.3m on recovery across portfolio
Tan Nai Lun
ARA US Hospitality Trust (ARA H-Trust) posted a net property income of US$5.3 million for its first quarter ended Mar 31, jumping from US$0.4 million a year ago.
Gross revenue was also 68 per cent higher at US$32.8 million for the quarter, from US$19.6 million a year earlier.
The hospitality trust saw sustained recovery across its portfolio, noting that the recovery in the US hotel market was supported by strong leisure demand, it said in a bourse filing on Wednesday (May 4).
Occupancy across its 5 hotel brands rose in the quarter, to average around 54.6 per cent, or 12.3 percentage points higher on year.
The trust’s revenue per available room also increased 67.4 per cent on year to US$65, while its average daily rate was up 29.8 per cent on year to US$119 in the quarter.
Meanwhile, its aggregate leverage ratio stood at 44.9 per cent as at Mar 31.
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Looking ahead, ARA H-Trust expects its recovery will exceed pre-pandemic levels amid forecasts of improving hotel industry fundamentals, and alongside the recovery of air travel volumes.
The trust, which owns brands including Hyatt Place and Courtyard by Marriott, noted that its portfolio reflects the general recovery pattern of the US lodging industry.
ARA H-Trust is a stapled group comprising ARA US Hospitality Property Trust, a real estate investment trust, and ARA US Hospitality Management Trust, a business trust.
Stapled securities of ARA H-Trust closed flat at US$0.51 on Friday.
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