Investment & Growth Strategies

ARA US Hospitality Trust is established with the principal investment strategy of investing in hospitality-related assets located in the U.S. Our objective is to increase shareholder value through delivering stable and growing distributions to Stapled Securityholders and achieving long-term growth in net asset value per Stapled Security while maintaining an appropriate capital structure.

Key Strategies

The Managers plan to achieve their objectives through the following key strategies:

The Managers will actively manage its portfolio to achieve growth in net property income, maintain optimal occupancy levels and enhance the value of the Properties. This includes optimising its portfolio by owning hotels with good cashflow-generating capability in sub-markets with strong underlying long-term market fundamentals, and allocate capital towards asset management initiatives for core assets that will drive returns, profits and distributions for ARA H-Trust and the Stapled Securityholders.

The Managers will source and acquire hotel properties that fit the investment policy to enhance returns to Stapled Securityholders. The Managers will pursue opportunities that will provide stable cash flows, together with potential for further income and capital growth. In evaluating future acquisition opportunities, the Managers will seek acquisitions that may enhance the diversification of the portfolio by location and brand.

The Managers endeavour to employ an appropriate mix of debt and equity to finance acquisitions and/or asset enhancements and to secure diversified funding sources. The Managers will also utilise interest rate and currency hedging where appropriate to minimise exposure to market volatility.

The Managers will be selective in undertaking development projects which have the potential to enhance the total value of the portfolio of the Trust.