Link: https://links.sgx.com/1.0.0/corporate-announcements/50UUAR54DX96SDIA/15d707cf5b83ec00abe24d48b36163bca8d294c9b041a15b81c130ca68055bff

Summary:

• Acrophyte Hospitality Trust has agreed to sell Hyatt Place Memphis Primacy Parkway for US$7.75 million in cash to individual buyer Shivam Patel under a conditional purchase and sale agreement dated 16 December 2025 (U.S. time).

• The sale price represents an 8.8% discount to an independent valuation of US$8.5 million and is expected to generate net divestment proceeds of about US$7.3 million after fees and transaction costs, with completion targeted in the first quarter of 2026.

• The 126-room hotel is classified as a non-core, underperforming asset, contributing only 1.2% of portfolio value and registering a 2024 GOP margin of 17.2% versus the trust’s 35.3% average, with RevPAR index at just 87%.

• Management cites oversupply, weakening FedEx-driven demand in Memphis, multiple operator changes and a 34.6% drop in asset value over five years, alongside looming capex of roughly US$4.5 million for brand and maintenance works, as key reasons to exit.

• Proceeds will be used to fund renovation capex across the remaining portfolio, reduce bank borrowings, pursue higher-yield acquisitions and/or meet general working capital needs, with pro forma DPS for 2024 rising from 1.772 to 1.849 US cents and NAV per stapled security staying at US$0.73.