Acrophyte Hospitality Trust H1 DPS falls 42.2% to US$0.00432 amid portfolio contraction, softer lodging demand

[SINGAPORE] Acrophyte Hospitality Trust on Wednesday (Aug 6) posted a fall in distribution per stapled security (DPS) to US$0.00432 for its first half-year ended June, down 42.2 per cent from S$0.00747 in the year-ago period.

The distribution will be paid out on Sep 26, after the record date of Aug 15, said its manager in a H1 business update.

For the six months, income available for distribution stood at US$2.8 million, down 35.8 per cent from US$4.3 million.

For the half-year, operating profit fell 9.9 per cent to US$26.7 million from US$29.6 million.

The declines came amid a reduction in portfolio size and softer lodging demand. The stapled group’s portfolio contracted 5.7 per cent on the year. As at June, it operates 33 hotels, down from 35 in the previous year.

Revenue for the period fell 6.9 per cent to US$78.1 million from US$83.9 million previously, primarily due to the sale of hotels in 2024 which led to a 7.3 per cent reduction in available rooms for sale.

The group divested three hotels in 2024 – Hyatt Place Pittsburgh Airport, Hyatt House Philadelphia Plymouth Meeting and Hyatt House Shelton. It is expected to divest Hyatt Place Detroit Auburn Hills in September.

On a same-store basis, revenue was relatively stable, slipping 1 per cent.

Net property income declined 14.3 per cent to US$18 million from US$21 million in H1 2024, primarily due to higher labour costs, rental expenses and insurance costs.

Lee Jin Yong, chief executive of the manager, said: “Additionally, the softening of overall US lodging demand – driven by macroeconomic uncertainty and policy-related headwinds – weighed on performance.”

Revenue per available room stood at US$94 as at Jun 30, up 0.7 per cent year on year from US$93.

Occupancy inched up 0.7 percentage point year on year to 68 per cent from 67.3 per cent.

Net gearing was up at 40 per cent as at end-June, compared with 39.1 per cent as at end-2024.

Weighted average debt maturity was 1.7 years as at Jun 30, 2025, versus 1.5 years as at Dec 31, 2024.

The manager said it intends to maintain a prudent capital management strategy, including the use of hedging instruments to mitigate exposure to interest rate volatility. It will continue portfolio optimisation and rebalancing initiatives through selective divestment of non-core assets, to redeploy capital into higher-yielding core assets or for paring down of debt. 

Stapled securities of Acrophyte Hospitality Trust ended Tuesday unchanged at US$0.295.