ARA US Hospitality Trust reported Wednesday its third quarter net property income swung to a positive US$9.2 million from a year-ago loss of US$1.3 million amid a stronger-than-expected summer travel surge.
Gross revenue for the July-to-September period more than doubled on-year to US$41.1 million from US$20.4 million in the year-earlier quarter, the trust said in a filing to SGX.
Revenue per available room (RevPAR) more than doubled on-year to US$80 i the quarter, while the average daily rate (ADR) increased 23 percent on-year to US$122, the filing said.
Occupancy in the quarter rose 26.1 percentage points on-year to 65.3 percent, ARA US Hospitality Trust said.
In its outlook, ARA US Hospitality Trust said travel confidence in the U.S. is rising again, although recovery momentum is slower.
The trust pointed to potential positives ahead, such as reopening U.S. borders to vaccinated international travelers, enhanced travel confidence due to mask and vaccine mandates, declining Covid cases and an impending return of corporate travel and group meetings.
As negatives in the outlook, ARA US Hospitality Trust pointed to labor shortages and turnover, supply-chain disruptions and inflationary pressures.