ARA H-Trust to divest two Hyatt hotels for $42m

The REIT will use net proceeds to repay debt or acquire new properties.

ARA US Hospitality Trust (ARA H-Trust) will divest two hotels to GHM Properties for $42m (US$31.0m), representing a 1.3% discount on the total valuation of $42.5m (US$31.4m).

The assets for sale include the Hyatt House Shelton in Connecticut (HHS) and the Hyatt House Philadelphia Plymouth Meeting in Philadelphia, Pennsylvania (HHPM).

The two assets are extended-stay hotels on freehold land in Connecticut and Pennsylvania, respectively.

The 127-room HHS has been operating since 2010 and was last renovated in 2017.

Meanwhile, HHMP has 131 rooms, opened in 2000, and underwent renovations in 2016.

On a pro forma basis, the divestment will reduce the company’s net property income to $60.7m (US$44.8m) from $63.2m (US$46.7m), and lower its dividend per share (DPS) to $0.44 (US$0.327) from $0.46 (US$0.343).

The REIT will use net proceeds from the divestment to repay bank loans to improve the company’s leverage ratio, cover general working capital needs, or acquire new properties.

Follow the link for more news on

divestment

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia