ARAHT is the first pure-play US upscale select-service hospitality trust to be listed in Singapore and Asia with a portfolio of 37 branded hotels geographically diversified across the US. With pent-up travel demand sustaining into 2H2023, ARAHT is well positioned to capture the recovery with its pricing power, leaner operating model and positive operating leverage, say the analysts.
DBS Group Research analysts Tabitha Foo, Derek Tan and Geraldine Wong have maintained their “buy” call on ARA US Hospitality Trust (ARAHT), noting that the REIT is resilient in its operational performance for the 1HFY2023 ended June 30.
However, they’ve lowered their target price from 55 US cents (60.67 cents) to 45 US cents, on the basis of slower-than-expected corporate travel recovery and higher cost of debt weighing on distribution per unit.
