According to independent appraiser, Newmark Valuation & Advisory Services, LLC, the hotel is valued at US$8.6 million as at Dec 31, 2022. The valuation is calculated based on the income capitalization approach and the sales comparison approach.
The sale consideration is negotiated on a willing-buyer and willing-seller basis, taking into account the independent valuation, and represents a 7.0% discount to the independent valuation. The sale consideration will be satisfied fully in cash.
In accordance with the trust deeds, the managers are entitled to a divestment fee of around US$40,000, or 0.5% of the sale consideration.
As at 9.39am, units in ARA US Hospitality Trust are trading flat at 34 US cents.
