SINGAPORE, Nov 6, 2019 - (ACN Newswire) - ARA US Hospitality Trust ("ARA H-Trust") is pleased to announce that it has
today entered into a conditional purchase and sales agreement to acquire a portfolio of three Marriott-branded upscale
select-service hotels in the United States for US$84.5 million. The three freehold properties are located within the
markets of Raleigh, North Carolina and San Antonio, Texas, that benefit from diversified demand from nearby
corporations, universities and leisure attractions.
The accretive acquisition at a net property income yield of 8.0% is expected to increase ARA H-Trust's pro forma
distribution income from the listing date on 9 May 2019 to 30 September 2019 by US$1.4 million, translating to a rise in
distribution per stapled security from 3.13 US cents to 3.38 US cents assuming the acquisition was completed on listing
date. The acquisition will be funded primarily with debt and by internal cash resources. Following this acquisition, ARA
H-Trust's portfolio will grow to 41 hotels with 5,340 guest rooms geographically diversified throughout 22 states in the
Mr Lee Jin Yong, the Chief Executive Officer of the Managers, said, "This acquisition demonstrates our ability to
execute third-party transactions at an attractive yield in the world's largest lodging market. We will continue to
explore acquisition opportunities to further diversify our portfolio by location and by brand, and most importantly to
enhance stapled securityholders' returns."
DBS Bank Ltd. ("DBS") was the Sole Issue Manager for the Offering (the "Sole Issue Manager"). DBS, Oversea-Chinese
Banking Corporation Limited and United Overseas Bank Limited were the Joint Financial Advisers and Joint Global
Coordinators for the Offering (collectively, the "Joint Financial Advisers and Joint Global Coordinators"). DBS,
Oversea-Chinese Banking Corporation Limited, United Overseas Bank Limited and Credit Suisse (Singapore) Limited were the
Joint Bookrunners and Underwriters for the Offering (collectively, the "Joint Bookrunners and Underwriters").
Mr Lee added, "We are excited with the addition of this high quality freehold portfolio which will broaden our earnings
base with diversified and increased net property income. The portfolio has outperformed its competitive set recording
RevPAR indices between 120% to 146%. The superior revenue per available room (RevPAR) performance will contribute
robust, stable cashflows to our bottom-line. In addition, the acquisition will affiliate ARA H-Trust with Marriott, a
leading global hotel brand, and Concord Hospitality, a well-regarded, experienced hotel developer and operator in the
US. The new relationship with Concord is expected to broaden our network to source future accretive acquisitions."
The portfolio consists of AC by Marriott Raleigh North Hills, Courtyard San Antonio at The Rim and Residence Inn San
Antonio at The Rim.
AC by Marriott Raleigh North Hills is the newest hotel within the heart of Raleigh's North Hills - one of
Raleigh/Durham's premier live-work-play destinations. North Hills is a mixed-use development that contains more than 1
million square feet of office space, with notable tenants such as PwC, KPMG and Bank of America, plus retail,
entertainment, and residences. Universities around the area include North Carolina State University (35,000 students),
Duke University (15,000 students) and University of North Carolina (29,000 students). It is also strategically located
20 to 30 minutes to the airport, downtown Raleigh, and the Research Triangle Park. The Research Triangle Park is one of
the most prominent high-tech research and development parks in the United States and houses 200 companies (including
IBM, SAS, GlaxoSmithKline, Cisco and Lenovo) with over 50,000 workers.
Courtyard San Antonio at The Rim and Residence Inn San Antonio at The Rim are located adjacent to each other in one of
the most desirable submarkets in San Antonio. The local market features attractive residential, retail, office
developments, as well as popular leisure attractions. Key demand drivers include Fortune 500 corporations (Valero,
Nustar and USAA); Six Flags Fiesta Texas amusement park; The Rim, a 2.8 million square feet master development with
retail, dining, and service amenities; the University of Texas at San Antonio (31,000 students); and Camp Bullis, a
28,000 acres US Army training facility with 6,000 employees and training throughput of over 170,000 annually.
Lee Jin Yong
Chief Executive Officer