The managers of ARA US Hospitality Trust (ARA H-Trust) has reported net property income (NPI) of US$0.4 million ($0.53 million) for the 1QFY2021 ended March, compared to a net property loss of US$1.7 million reported in the 4QFY2020 ended December.
The uplifted portfolio, according to the managers, is due to the record pace of vaccinations in the US and federal stimulus.
1QFY2021 gross revenue increased 6.5% q-o-q to US$19.6 million.
Gross operating profit (GOP) fell 3.4% q-o-q to US$2.8 million.
GOP margin fell 1.8 percentage points q-o-q to 14.1% for the quarter.
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Revenue per average room (RevPAR) during the 1QFY2021 improved by 8.3% q-o-q to US$39, while the average daily rate stood at US$91.
Occupancy rates during the quarter were 42.3%, 2.9 percentage points higher q-o-q.
The trust reported weekly performance that stood “consistently above” GOP breakeven level, which was attributable to the robust rebound backed by strong leisure travel.
As at March 31, net asset value (NAV) per stapled security was 60 US cents.
Cash balance as at end-March stood at US$21.8 million.
SEE:'Ready to fly' once travel resumes: DBS on ARA US Hospitality Trust
In its outlook statement, the trust sees “restored confidence” as it sees the US fiscal stimulus driving recovery in US hotels.
Americans are also said to be ready to travel in 2021 with domestic destinations as top preferences.
Weekend occupancy rose steadily in the 1QFY2021 to above 70%. The trust also sees emerging signs of corporate travel returning near the end of 1QFY2021, with weekday occupancies hitting 50%.
Units in ARA H-Trust closed 0.5 US cent lower or 1.0% down at 52 US cents on May 5.
