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.
See: DBS lowers ARA US Hospitality Trust's TP to 75 US cents; expects more meaningful recovery in FY2022
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.
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
