Key points (Q1 2025)
Revenue: US$33.5 million (-7.7%)
Operating profit: US$9.3 million (-12.8%)
[SINGAPORE] Acrophyte Hospitality Trust’s revenue for the first quarter of 2025 fell 7.7 per cent to US$33.5 million, from US$36.2 million in Q1 2024.
In a business update on Wednesday (May 7), the managers attributed this to an 8.3 per cent year-on-year reduction in portfolio size. The stapled group now operates 33 hotels across 17 states in the US.
The managers also reported 12.8 per cent lower Q1 operating profit at US$9.3 million, from US$10.7 million in the previous corresponding period.
Its net property income dropped 18.1 per cent to US$5.3 million, from US$6.4 million previously.
Lee Jin Yong, chief executive of the managers, said: “Our operational performance during the first quarter of 2025 was affected by the absence of contributions from three disposed hotels in FY2024. Furthermore, seven hotels transitioned to new management, and utility expenses increased due to severe winter weather conditions.”
Meanwhile, occupancy increased by two percentage points year on year to 61.5 per cent.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Net asset value per stapled security fell to US$0.71 as at Mar 31, 2025, from US$0.73 as at Dec 31, 2024. Weighted average debt maturity stood at two years, compared with 1.5 years in the prior quarter.
Hotels’ performance and outlook
The managers noted that the US lodging market has stabilised, with hotel occupancy expected to grow as demand outpaces supply.
In Q1, Acrophyte’s average daily room rate rose 0.2 per cent year on year to US$131, while revenue per available room was up 3.5 per cent on year at US$81.
“The recovery in domestic business and group demand is expected to drive increases in average daily rates, contributing to the lodging industry’s continued stability,” they added.
The stapled group had about US$25.7 million in cash and cash equivalents as at Mar 31, including reserves earmarked for upcoming capital expenditures.
Lee said the managers are “cautiously optimistic” about the demand outlook for this sector amid macroeconomic uncertainties.
In 2025, seven more hotels in Acrophyte’s portfolio will undergo asset enhancement initiatives. Work on two Marriott-branded hotels will begin in June, while that on five Hyatt-branded ones will start in November. This follows six hotels that completed such initiatives in 2024.
Acrophyte Hospitality Trust was previously known as ARA US Hospitality Trust.
Stapled securities of Acrophyte Hospitality Trust closed flat on Tuesday at US$0.205.
