ARA US Hospitality Trust posts $2.02m net loss in H1

It suffered with a drop in hotel occupancies and temporary hotel closures.

ARA US Hospitality Trust (ARA H-Trust) saw a net loss of $2.02m in H1 from a forecast of a $29.48m profit, an SGX filing revealed. Revenue similarly sunk 58.4% to $39.35m from $94.51m.

Likewise, gross operating profit plunged 84.7% to $5.84m from its $38.12m forecast. The firm arrived at a net loss and nil distributable income after taking into account fixed costs.

The portfolio’s performance in H1 was adversely impacted by the pandemic, with significant drop in hotel occupancies and temporary hotel closures resulting in significant declines in revenue. The portfolio recorded occupancy of 43.2% compared to forecast at 75.6%. Average daily rate (ADR) was also recorded to be 15% lower than forecast at $152.28 (US$111).

However, ARA H-Trust stated that they have adequate liquidity to meet its operational needs and financial commitments. As at 30 June, ARA H-Trust has a total of approximately $29.5m (US$21.5m) in cash on-hand and the aggregate leverage of 42.5% remains below the regulatory limit of 50%.