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Eagle Hospitality Trust takes initiatives to counter coronavirus impact
EAGLE Hospitality Trust's (EHT) sponsor and manager have both taken initiatives to preserve and enhance portfolio performance amid softening market fundamentals and uncertainties due to the impact of the novel coronavirus outbreak.
EHT's revenue improvement strategies include a new income-guaranteed parking management contract with a third-party operator at 12 hotels, starting in April 2020, according to its statement on Tuesday night.
Other revenue strategies are:
* An enhanced dynamic pricing strategy through a supplemented sales force;
* Revenue management support through major brand partnerships;
* New corporate revenue directors in the operational team of the lessee Urban Commons;
* A revenue enhancement team that has already begun implementing revenue improvement strategies throughout the portfolio; and
* A bolstered events department to improve production and expansion into new areas, including eSports and Virtual Reality.
Furthermore, consolidation of the property management at EHT’s three Denver assets - among three property manager changes - are expected to take place in the second quarter this year.
Urban Commons has planned for two brand changes for 2020 and 2022 as well, using a strategy aimed to optimise the assets’ positioning in their respective markets.
It noted that the lodging market in the United States, while not immune to the impact of the virus, has experienced a lesser impact than China and other surrounding markets that rely more heavily on Chinese tourism.
Separately, chief financial officer of EHT's manager has quit with effect from March 2. Fred Chee Kin Yuen was appointed to the post nine months ago. The 54-year-old was leaving for "personal reasons", according to the regulatory filing on Tuesday.
EHT units closed at US$0.365, 1.5 US cents or 3.95 per cent down on Tuesday, before these announcements were made.