Acrophyte Hospitality Trust’s ability to stay afloat in doubt over US$198.5 million loan due in September
Refinancing formal negotiations and due diligence are expected to take place only closer to the loan’s maturity date
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[SINGAPORE] Acrophyte Hospitality Trust’s auditors have raised doubts about whether the Singapore-listed hospitality group can refinance a US$198.5 million loan that falls due in September, flagging a material uncertainty over its ability to continue operating.
The auditors noted that while the managers of the stapled group have obtained non-binding expressions of interest from lending banks for the refinancing, formal negotiations and due diligence are expected to take place only closer to the loan’s maturity date.
The timing and terms of any refinancing therefore remain uncertain, the managers said in a bourse filing on Monday (Apr 13).
As at Dec 31, 2025, the stapled group and its real estate investment trust arm reported net current liabilities of US$181.3 million and US$166.2 million respectively, while its business trust arm had net current liabilities of US$33.4 million.
The managers said they remain confident in Acrophyte Hospitality Trust’s ability to secure the required refinancing, pointing to the lending banks’ track record of consistent support in past refinancing exercises.
They also noted that the audit opinion remains unqualified, and that the FY2025 financial statements were still prepared on the basis that the trust will continue operating.
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The auditors’ concerns come as Acrophyte Hospitality Trust is in the middle of a strategic review launched in May 2025. The stapled group is in talks with its sponsor Tang Organization – formerly known as Chip Eng Seng Corporation – over a possible deal.
Acrophyte Hospitality Trust’s portfolio comprises 31 upscale select-service hotels with a total of 4,061 rooms across 16 US states, franchised under brands including Hyatt, Marriott and Hilton.
Stapled securities of Acrophyte Hospitality Trust last traded flat at US$0.255 on Monday before the announcement.
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