Acrophyte Hospitality Trust · SGX:XZL
Acrophyte Hospitality Trust — ARA US Hospitality Trust — FY2019 Earnings Presentation
19 slides from Acrophyte Hospitality Trust's earnings presentation, Feb 19, 2020
Slide 1: ARA US Hospitality Trust FY2019 Financial Results
ARA US Hospitality Trust FY2019 Financial Results (9 May 2019 to 31 December 2019) 19 February 2020
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with ARA US Hospitality Trust’s financial results announcement date 19 February 2020 published on SGXNet. This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of
Slide 3: Key Highlights
Key Highlights Well Poised for Further Growth 9 May 2019 First Pure-Play U.S. Upscale Distribution Per Stapled Security Gearing Select-Service Hospitality Trust 4.21 US cents (2) 32.1% (3) Listed on SGX Mainboard 23 Sept 2019 Occupancy Joined GPR/APREA Composite Index 77.0% Average Cost of Debt and
Slide 4: US Economic Performance
US Economic Performance • GDP grew 2.3% in 2019 (1), extending the US’s longest economic expansion on record • CPI inflation rate of 2.3% for 2019 (2) • Unemployment rate remained at 3.5% in December 2019 (2) • FOMC (3) lowered target federal funds rate thrice in 2019 with federal fund rates at 1.5%
Slide 5: Industry Performance
Industry Performance • RevPAR for 2020 stable, with positive growth in 2021 • Supply headwinds across all segments are impacting RevPAR growth, due to introductory rates of new supply entrants • Supply for the upscale sector grew 5.3% in 4Q 2019 due to attractiveness of the segment • However the ups
Slide 6: COVID-19 Update
COVID-19 Update COVID-19 Risk Factors to Monitor • Global and US infection rates and spread • US travel restrictions • Economic impact Potential Portfolio Impact / Assessment • Primarily US domestic customer base; no location in gateway city • Highly diversified Portfolio; no concentration > 5% Prop
Slide 7: Performance Across Brands
Performance Across Brands Occupancy RevPAR RevPAR Index GOP margin 82.3% US$113 116.0% 41.2% 74.6% US$85 102.3% 35.7% 38 77.0% US$94 106.3% 37.5% Hotels • Performance by Hyatt House hotels • Performance by Hyatt Place hotels Strong Occupancy at 82.3% High Occupancy at 74.6% Outperform RevPAR o
Slide 8: Financial Highlights
Financial Highlights • Achieved DPS of 4.21 US cents which translates to an annualized yield of 7.4% (1) • Portfolio occupancy remained strong at 77% • Portfolio RevPAR outperformed its comparable hotel sets by an average of 6.3% • Property Expenses were slightly lower than forecast, with lower mana
Slide 9: Prudent Capital Management
Prudent Capital Management Stable Financial Indicators 31 December 2019 Pro forma (1) Total assets US$759 mil US$834 mil Total debt US$244 mil US$319 mil Aggregate leverage 32.1% 38.2% Average cost of debt (p.a.) 3.90% 3.79% Interest coverage ratio 4.5 times 4.1 times Long debt maturity 4.4 years 4.
Slide 10: FY2019 in Review
FY2019 in Review Property-Level New Supply Exogenous Management Absorption Factors Turnover Temporary Disruptions Introductory discount rates offered until Nearly all open positions Hurricane Dorian absorption; RevPAR filled, with staffing substantially upgraded General Motors Strike growth resumes
Slide 11: Proactive Initiatives
Proactive Initiatives Optimal pricing strategies Sales team upgrade Channel management Emphasis on group sales & local volume accounts Rational and dynamic pricing Collaboration with revenue Team upgrade management Hyatt trained Digital marketing Geographical alignment Revenue Sa
Slide 12: Premium Marriott-Branded Hotels Acquired in Jan 2020
Premium Marriott-Branded Hotels Acquired in Jan 2020 Accretive Acquisition enhances Stapled Securityholders’ returns Total Valuation of US$88.9 million AC Hotel Raleigh North Hills Courtyard San Antonio at The Rim Residence Inn San Antonio at The Rim Occupancy RevPAR RevPAR Index GOP margin 78.3% US
Slide 13: Continued Growth
Continued Growth U.S. is the largest lodging market with 5.3 million rooms. Demonstrated ability to execute 3rd party transactions at attractive yields with recent portfolio acquisition New York Massachusetts Pipeline opportunities continue to be Connecticut Idaho Michigan robust Pennsylvania Ne
Slide 14: Distribution Schedule
Distribution Schedule • First Distribution of 4.21 US cents per Stapled Security to be paid on 27 March 2020 • Stapled Securityholders NOT required to submit W-8Ben or W-9 Forms • Distributions will be made on a semi-annual basis Distribution Schedule Ex-Distribution Date 27 February 2020 Books Clos
Slide 15: Appendix
Appendix Courtyard and Residence Inn Six Flags at The Rim 14
Slide 16: Overview of the Sponsor
Overview of the Sponsor Overview of ARA Asset Management Limited (“ARA”) A leading APAC real assets fund manager with a global reach Global reach Headquartered in Singapore with 9 offices across the globe and a presence in more than 100 cities in 28 countries ~S$87 billion1 >1,200 employees in Gross
Slide 17: Portfolio Overview
Portfolio Overview 41 22 5,340 US$0.5b 39 Hotels States Rooms Market Cap Freehold1 Premier Hotel Branding 11 27 3 Managed by: • Aimbridge Hospitality • Concord Hospitality Raleigh North Hills San Antonio at The Rim (1) Hyatt House Richmond West, which is held under a ground leasehold (expiring in Ju
Slide 18: Structure of ARA US Hospitality Trust
Structure of ARA US Hospitality Trust Stapled Tax Efficient Structure Securityholders Bulk of the distributions are tax exempt, as it is Management repatriated to Singapore via the shareholder’s loan Management ARA US Services and acts on extended by the ARA H-BT (via CaymanCo) due to Services beh
Slide 19: Thank You
Thank You For enquiries, please contact: Investor Relations [email protected] Tel: +65 6601 9362 www.araushotels.com
ARA US Hospitality Trust — FY2019 Earnings Presentation on 6ix