Directors of Eagle Hospitality Trust's sponsor to step down from board

Their resignations are expected to take effect by 26 May.

Howard Wu and Taylor Woods, directors of Eagle Hospitality Trust's (EHT) sponsor Urban Commons, plan to resign from EHT’s board of directors, according to an announcement.

Wu and Woods served as the non-independent and non-executive chairman, and deputy chairman, respectively. Their resignations are expected to take effect on 26 May.

This comes after EHT’s announcement relating to the failure to disclose material interested person transactions resulting from “further non-disturbance agreements” entered between October 2019 and February 2020 by the directors on behalf of certain master lessors, master lessees, and relevant hotel managers.

This is despite EHT's interested person transaction compliance manuals requiring to internally report, disclose and declare in accordance with compliance policies, and provide copies of the agreements to the EHT board.

EHT’s audit and risk committee further noted that the agreements are not on usual commercial terms and are prejudicial to the interests of EHT and its stapled securityholders.