ARA US Hospitality Trust posts stronger 3Q amid strong summer travel surge

Overall, net profit income (NPI) for 3QFY2021 came in at US$9.2 million, compared to a loss of US$1.3 million a year ago.

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Occupancy saw an improvement of 26.1 percentage points from the previous year at 65.3%, while revenue per average room (RevPAR) was 104.9% higher y-o-y at US$80.

The REIT attributed its improving results to the strong summer leisure demand and travel surge in the US, as cities come out of lockdown and vaccination rates increase.

Looking ahead, the REIT’s manager believes that travel confidence is on the rise again, albeit with a slower recovery momentum. As US borders reopen to vaccinated international travellers, travel confidence improves, Covid-19 cases decline and corporate travel and group meetings start to resume, the REIT’s manager believes that the hotel industry’s fundamentals are poised for continued recovery.

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Units in ARA HT closed at 52 US cents on Nov 3.

Photo: Hyatt