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Acrophyte Hospitality Trust's NPI Down 4.0% YoY in 9M 2024

Singapore Business Review ·  Nov 7 10:45

The decline was attributed to recent divestments and asset enhancement initiatives.

Acrophyte Hospitality Trust, previously known as ARA US Hospitality Trust (ARA H-Trust), reported a 4.0% year-on-year (YoY) decline in net property income (NPI) for 9M 2024 to US$33.8m from US$35.2m a year ago.

Gross operating profit and gross revenue also fell 4.9% YoY to US$46.3m and 3.9% YoY to US$129.4m, respectively.

The company reported a 69.1% occupancy rate, down 1.5 percentage points YoY. Portfolio also dropped 8.1% to 34 hotels following the divestment of three Hyatt Hotels.

Net proceeds from the divestments were used to repay debt and acquire Home2 Suites at Colorado Springs.

In addition, the company commenced asset enhancement initiatives (AEI) on six hotels in 2024, with four completed and two still underway.

The company said the AEIs disrupted operational performance and contributed to the gross revenue decline.

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