Hyatt Place Raleigh-Durham Airport. (Photo: ARA US Hospitality Trust)Hyatt Place Raleigh-Durham Airport. (Photo: ARA US Hospitality Trust)

ARA US Hospitality Trust has priced its initial public offering (IPO) at USD0.88 per stapled security.

This translates to an annualised distribution yield of 8.0% for its 2019 forecast period, which runs from 1 May to 31 December that year.

The trust is also projecting a distribution yield growth of 2.1% in 2020, which adds up to a total return of 10.1%, according to media statements sent to REITsWeek on 2 May.

REITsWeek reported on 25 April that the manager for ARA US Hospitality Trust has filed its preliminary prospectus with Singapore’s market regulators, with a view on listing on the Singapore Exchange (SGX).

Related: ARA US Hospitality Trust eyes listing on Singapore Exchange

ARA US Hospitality Trust is positioning itself as the first pure-play US upscale hospitality portfolio to be listed on the SGX.

It will be a hospitality stapled group comprising of ARA US Hospitality Property Trust, and ARA US Hospitality REIT.

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.