Acrophyte Hospitality Trust has reported gross revenue of US$121.2 million ($157.8 million) for the 9MFY2025 ended Sept 30, 6.3% lower y-o-y, due to the disposal of two hotels and the brand-mandated renovation of two high-performing hotels. Gross revenue for the 3QFY2025 fell by 5.3% y-o-y to US$43.1 million.
Gross operating profit for the 9MFY2025 fell by 9.6% y-o-y to US$41.9 million while net property income (NPI) fell by 13.9% y-o-y to US$29.1 million. 3QFY2025 gross operating profit fell by 9.1% y-o-y to US$15.2 million while 3QFY2025 NPI fell by 13.2% y-o-y to US$11.1 million.
Gross operating profit margin for the 9MFY2025 fell by 1.3 percentage points to 34.5% while NPI margin fell by 2.1 percentage points to 24%.
On a same-store basis, gross revenue fell by 1.2%, while NPI declined by 10.6% mainly due to higher operating costs, particularly labour and insurance expenses.
As at Sept 30, Acrophyte Hospitality Trust had 32 hotels, down from 34 hotels, comprising a total of 4,188 rooms, down from 4,442 rooms. The sale of Hyatt Place Detroit Auburn Hills was completed on Sept 10 for US$6.65 million. The net proceeds will be used for brand-mandated renovations at other properties within the portfolio, working capital requirements or debt repayment.
Portfolio occupancy as at Sept 30 rose by 0.9 percentage points y-o-y to 73.7%. The average daily rate fell by 2.6% y-o-y to US$140. Revenue per available room (RevPAR) fell by 1.5% y-o-y to US$103.
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According to the trust, the operational performance for the nine-month period was impacted by a mix of portfolio contraction, renovations, as well as softer lodging demand amid macroeconomic uncertainty.
“Our operational performance in the third quarter of 2025 was impacted by the absence of contributions from the hotels divested and dislocation due to the brand-mandated renovations at two of our higher-performing hotels. Additionally, overall US lodging performance remained tepid in 2025, reflecting subdued business and international travel amid geopolitical tensions and ongoing economic uncertainty,” says Lee Jin Yong, CEO of the managers.
“We observed a weakness in midweek demand as corporate transient and group demand slowed. As a result of lower demand, pricing power, as measured by average daily rate, has diminished. Nevertheless, due to our active, hands-on asset management approach, our portfolio has outperformed our competitive set," he adds.
As at Sept 30, the trust has around US$32.5 million in cash and cash equivalents, which includes reserves earmarked for upcoming capital expenditures.
Looking ahead, the trust expects to see moderate RevPAR growth forecast with US lodging RevPAR estimated to be at US$101 and US$103 for 2025 and 2026 respectively.
Units in Acrophyte Hospitality Trust closed at 26.5 US cents on Nov 12.
