In its latest 3QFY2021 ended September business update, ARA US Hospitality Trust (ARA HT) reported a set of strong results.
For the third quarter, the REIT saw gross revenue double y-o-y to US$41.1 million from US$20.4 million, bringing gross operating profit to US$15.0 million, a significant surge from US$3.9 million a year ago.
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Overall, net profit income (NPI) for 3QFY2021 came in at US$9.2 million, compared to a loss of US$1.3 million a year ago.
Occupancy saw an improvement of 26.1 percentage points from the previous year at 65.3%, while revenue per average room (RevPAR) was 104.9% higher y-o-y at US$80.
The REIT attributed its improving results to the strong summer leisure demand and travel surge in the US, as cities come out of lockdown and vaccination rates increase.
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Looking ahead, the REIT’s manager believes that travel confidence is on the rise again, albeit with a slower recovery momentum. As US borders reopen to vaccinated international travellers, travel confidence improves, Covid-19 cases decline and corporate travel and group meetings start to resume, the REIT’s manager believes that the hotel industry’s fundamentals are poised for continued recovery.
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Units in ARA HT closed at 52 US cents on Nov 3.
Photo: Hyatt
