ARA US Hospitality Trust : XZL 0%’s (ARA H-Trust) net property income (NPI) for the first nine months of FY2023 rose 6.7 per cent year on year to US$35.2 million from US$33 million.

Gross revenue stood at US$134.6 million, up 3.6 per cent from US$130 million in the same period last year.

Gross operating profit (GOP) for the nine-month period rose 8.6 per cent to US$48.7 million from US$44.9 million a year prior.

Both NPI and GOP margins were higher than in the year before. The NPI margin expanded 0.8 percentage point to 26.2 per cent, and the GOP margin rose 1.7 percentage points to 36.2 per cent.

On Friday (Nov 10), ARA H-Trust’s managers attributed the stapled group’s topline growth to a continued increase in average daily rates (ADR) and occupancy growth.

Revenue per available room (RevPAR) grew 14.8 per cent on the year to US$98 from S$85. The managers said this was boosted by ADR growth, even as occupancy rates were slightly below pre-pandemic levels, as corporate and group travel has yet to fully recover.

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They cited a positive outlook for the US lodging market for the rest of the year, highlighting resilient demand for the first nine months despite elevated interest rates and inflationary concerns.

Demand from the business and group segments have also gained traction to boost overall lodging demand, they added.

Lee Jin Yong, chief executive of the managers, said: “With US hotel RevPAR now above pre-Covid-19 levels, the continuing recovery of business and group travel will represent further upside for our portfolio. We are cautiously optimistic that the operating metrics for our portfolio will further strengthen, barring any unforeseen circumstances.”

He also said the stapled group’s financial and liquidity positions have “significantly improved” with the recent refinancing of its maturing loans due in 2024.

Stapled securities of ARA H-Trust closed flat at US$0.27 on Thursday.