The managers of Acrophyte Hospitality Trust are "evaluating a range of strategic options", citing capex needed to enhance its portfolio of hospitality assets in the US.
"In connection with their evaluation, the managers are also in discussions with the sponsor in respect of a potential transaction involving the stapled securities."
As at March 31, its NAV per unit was 71 US cents (91 cents), versus its May 29 closing price of 26.5 US cents.
Its portfolio comprises 33 select-service hotels with a total of 4,315 rooms across 17 states in the United States.
In recent cases, listed entities that have put up announcements with similar wordings of "strategic options" have ended up receiving privatisation offers from their controlling shareholders, such as Frasers Hospitality Trust.
Acrophyte Hospitality Trust was previously known as ARA US Hospitality Trust.
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The renaming happened after the manager changed hands to come under Acrophyte AM, a unit of Acrophyte, which largely consists of the businesses of what was known as Chip Eng Seng Corp.
The entities are all ultimately controlled by Gordon and Celine Tang, who have multiple interests in property and construction.
