Brokers' take

Eagle Hospitality Trust | Buy (initiate) June 26 close: US$0.685 Target price: US$1.00 Jefferies Singapore, June 26

Eagle Hospitality Trust (EHT) has 18 hotel assets located across 12 high-growth US metros with expected growth of 3.1 per cent per annum (pa), underpinning robust business and leisure demand. At the same time, we forecast muted industry supply growth of 1.9 per cent pa due to elevated construction costs.

We thus expect 1.8 per cent pa revenue per available room growth in its micro markets. The trust has ample diversification with no single metro accounting for more than a third of the total rooms.