Acrophyte Hospitality sells Hyatt Place Detroit Livonia for $10m

The divestment frees capital for Acrophyte to reduce debt or acquire new property.

Acrophyte Hospitality Trust Management Pte. Ltd. has announced the sale of the Hyatt Place Detroit Livonia for a consideration of $13m (US$10m).

In a bourse filing, the manager of Acrophyte Hospitality Property Trust said that its indirect wholly-owned subsidiary, ARA USH Chicago, LLC, on 8 December entered into a conditional purchase and sale agreement with NJA Management Group LLC for the sale of the 127-room property.

The company said the sale price was 2.9% below its last valuation of $13.39m (US$10.3m). The Sale Consideration will be satisfied wholly in cash.

The Managers are entitled to a divestment fee of approximately $65,000 (US$50,000), being 0.5% of the Sale Consideration. In addition, the sale is expected to incur approximately $643,500 (US$495,000) of transaction costs. Accordingly, the net divestment proceeds are estimated to be approximately $12.35m (US$9.5m).

Acrophyte Hospitality Trust said this divestment will free up capital, which can be used to fund the capital expenditure needs in relation to the ongoing renovation requirements of the existing portfolio, pare down existing bank borrowings to improve the portfolio’s average leverage ratio and increase debt headroom, or acquire accretive and higher yield properties.

The divestment is expected to be completed in the first quarter of 2026.

US$1 = $1.3

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