Eagle Hospitality Trust has terminated the master lease agreements (MLAs) for all 18 properties in its portfolio.
The move has been done in the best interests of unitholders, and is necessary to facilitate the restructuring process, said EHT.
The termination of the MLAs is to occur 10 days after the delivery of the termination notices to the master lessees.
The issuance of the termination notices of the MLAs follows last week’s announcement that the master lessees have been issued “pay or quit” notices.
Related: Eagle Hospitality Trust issues “pay or quit” notices to master lessors
The master lessees will continue to be liable for all rent payments due.
Presently, only three of the 18 hotels in EHT’s portfolio are open and operational – the Delta Woodbridge, the Holiday Inn Denver East - Stapleton and the Renaissance Denver.
Until longer-term replacement lessees are found, EHT and the master lessors will continue to provide oversight of the hotels.
It is envisaged that all of the 18 hotels in EHT’s portfolio, circumstances permitting, will eventually be reopened to the public.
The master lessors will seek to receive operating income from the operation of the hotels on an interim basis, until new master lessees are installed, pending a requests for proposals (RFP) process.
An update in respect of the RFP process will be separately provided at the appropriate juncture, said EHT.
Units of EHT remain suspended from trading on the Singapore Exchange (SGX).