In its recent results announcement, EHT’s manager pointed out that fundamentals have deteriorated since its IPO. EHT’s manager said in results release on Feb 18, “US RevPAR esti-mates were revised down throughout the year; 2019 RevPAR growth as of 1Q 2019 was 2% and has since been revised down to 0.8% (i.e. a 60% decrease).”
SINGAPORE (Feb 21): As far as bottom line DPS are concerned, both Eagle Hospitality Trust (EHT) and ARA US Hospitality Trust fell short of their forecasts in their respective prospectus in April and May last year as parts of the US economy softened for specific sectors.
Through no fault of their own, the sponsors of Eagle Hospitality Trust and ARA US Hospitality Trust were wooed and won by the Singapore Exchange and DBS Bank’s investment banking department. At the time of their IPOs, just under a year ago, and within weeks of each other, the outlook for the US hospitality mar-ket appeared all hunky-dory. But, as 2019 wore on, that upbeat prognosis was chipped away.
