Acrophyte Hospitality Trust 9-month net property income falls 13.9% to US$29.1 million
The drop is largely due to hotel dispositions and renovations, as well as increases in operating expenses
[SINGAPORE] Acrophyte Hospitality Trust’s net property income (NPI) for the first nine months of 2025 fell 13.9 per cent to US$29.1 million from US$33.8 million in same period last year.
Revenue clocked in at US$121.2 million, down 6.3 per cent from US$129.4 million in the same period last year. The trust also recorded a lower operating profit of US$41.9 million, down 9.6 per cent from US$46.3 million.
The declines were mainly due to hotel dispositions and renovations, as well as increases in operating expenses like labour and insurance, said the trust’s managers on Thursday (Nov 13).
The disposal of two hotels led to a 5.7 per cent reduction in available rooms for sale and there was lower revenue contribution from two high-performing hotels undergoing brand-mandated renovations.
The operational performance for the first nine months of 2025 was impacted by a combination of portfolio contraction and impact of renovations, as well as “softer lodging demand” amid macroeconomic uncertainty.
The stapled group’s portfolio contracted 5.9 per cent on the year. As at September, it operates 32 hotels, down from 34 in the previous year.
In September, the managers completed the sale of Hyatt Place Detroit Auburn Hills for about US$6.7 million. The net proceeds will be used for “brand-mandated renovations” at other properties within the portfolio, working capital requirements or debt repayment.
As at end-September, Acrophyte Hospitality Trust’s aggregate leverage ratio stood at 42.6 per cent. Its weighted average debt maturity was at 1.5 years. To date, 50.5 per cent of the trust’s loan portfolio is hedged to fixed rates.
Lee Jin Yong, chief executive officer of the managers, said: “We will continue to focus on improving operational efficiency and maintaining financial flexibility...”
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Stapled securities of Acrophyte Hospitality Trust rose 1.9 per cent or US$0.005 to end Wednesday at US$0.265.
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