ARA Asset Management acquires 38 Hyatt Hotels in US, with potential for injection into REITs

U.S. five dollar currency note; taken September 2018.

ARA Asset Management said on Monday that it acquired a portfolio of 38 select service Hyatt Hotels, branded as Hyatt Place and Hyatt House, located in 21 states in the U.S., with the properties potentially to be injected into its REITs.

The acquisition marked ARA’s first foray in the U.S. market, it said in a filing to SGX before the market open on Monday.

John Lim, group CEO of ARA, said that acquisition helped to diversify its portfolio.

“We will look at injecting this quality portfolio into our growing REITs and private fund platforms in the near future as part of our multi-platform, multi-product global fund management strategy,” Lim said in the statement.

“We are confident of the U.S. hospitality sector, particularly in select service hotels, where entry yields remain attractive.” he added.

He noted that the U.S. has the most developed hotel market globally, with 41 percent of global hotel rooms and 40 percent of global rooms revenue. He added that the U.S. economy is still robust, with a positive long-term outlook.

ARA also plans to open an office in Dallas, Texas, to act as a U.S. operational base, it said.

The acquisition will expand ARA’s portfolio to 99 cities in 21 countries, the filing said.

As of 30 June, ARA, which is one of Asia’s largest REIT managers, had around S$78.2 billion in group assets under management, the filing said. ARA directly manages Fortune REIT, Suntec REIT, Cache Logistics Trust, Hui Xian REIT and Prosperity REIT.

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