The manager of ARA US Hospitality Trust has reported gross revenue of US$32.8 million ($45.4 million) for the 1QFY2022 ended March, 68% higher y-o-y.
Gross operating profit for the quarter surged 3.1 times to US$8.7 million from US$2.8 million previously, while net property income (NPI) surged 13.25 times to US$5.3 million from US$0.4 million previously.
The better quarterly performance was due to sustained recovery across the REIT’s portfolio, as occupancy rates and revenues per available room (RevPAR) increased across the REIT’s properties.
During the 1QFY2022, the REIT reported portfolio occupancy of 54.6%, 12.3 percentage points higher y-o-y.
The average daily rate (ADR) increased by 29.8% y-o-y to US$119.
Revenue per available room (RevPAR) for the period increased by 67.4% y-o-y to US$65.
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Gross operating margin increased by 12.5 percentage points y-o-y to 26.6%
According to the manager, the recovery in the US hotel market was supported by strong leisure demand, although metrics dipped in January due to the Omicron wave, before rising again.
As at March 31, the REIT’s net asset value (NAV) per stapled security stood at 70 US cents.
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Its cash balance stood at US$17.7 million as at March 31. Aggregate leverage ratio as at March 31 stood at 44.9%.
Looking ahead, the manager is positive on its prospects as the recovery of the hotel industry is slated to exceed beyond its pre-pandemic levels. It adds that its portfolio reflects the general recovery pattern of the lodging industry in the US.
Within the US, the hotel industry’s occupancy for the FY2022 to FY2024 is expected to range from 64% to 67%, compared to the 66% logged in FY2019.
ADR is expected to range from US$134 to US$145 from the FY2022 to FY2024 from FY2019’s US$131.
RevPAR is also expected to range from US$86 to US$97 from the FY2022 to FY2024 compared to the FY2019’s US$87.
Units in ARA US Hospitality Trust closed 0.5 US cent higher or 0.99% up at 51 US cents on April 29.
