Singapore-listed ARA US Hospitality Trust (ARA H-Trust) has entered into a conditional sale and purchase agreement to acquire Home2 Suites by Hilton Colorado Springs South for USD29 million.
The property is being acquired from CH Tenderfoot Hill, LLC and it is presently managed by Chartwell Hospitality, LLC.
The asset is a select-service, extended-stay hotel with 119 rooms located at 1235 Tenderfoot Hill Road, Colorado Springs.
Besides tourists, the area features prominent US aerospace and military establishments, high-tech industries, as well as higher education institutions, said the trust.
The asset commenced operations in October 2019 and achieved RevPAR of approximately USD129 for the trailing 12-month period through to October 2022.
The acquisition is being executed at a net property income yield of approximately 9.0% and it is expected to be yield accretive.
ARA H-Trust expects to fund the acquisition fully with cash, using the net proceeds from its divestments made in 2022.
ARA H-Trust was last done on the Singapore Exchange at USD0.36, which presently implies a distribution yield of 7.93% according to data on the Singapore REITs table.