ARA US Hospitality Trust (XZL) AI Stock Analysis

• Market Cap: $147.93M
• Dividend Yield: 5.16%
• Average Volume (3M): 211.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -6.01%
• EPS Growth: -36.46%
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.02
• Shares Outstanding: 580,102,400
• 10 Day Avg. Volume: 142,690
• 30 Day Avg. Volume: 211,290
• PEG Ratio: -0.04
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 7.85
• Enterprise Value/Market Cap: 3.02
• Enterprise Value/Revenue: 3.71
• Enterprise Value/Gross Profit: 14.02
• Enterprise Value/Ebitda: 16.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.02
• Revenue Forecast (FY): $161.40M

• Rating: 53 Neutral
• Price Target: $0.50 ▲(92.31% Upside)

The overall stock score of 53 reflects significant financial challenges, including declining revenues and persistent net losses. While technical indicators suggest a neutral trend, the negative P/E ratio highlights valuation concerns. The dividend yield offers some income potential, but the company's financial instability remains a major risk.

Positive Factors

Cash Flow Improvement

Improved cash flow management enhances liquidity and operational flexibility, supporting long-term sustainability and investment potential.

Stable Leverage

Maintaining moderate leverage provides financial stability, reducing risk and allowing the company to navigate economic fluctuations more effectively.

Strategic Partnerships

Strong partnerships with reputable brands improve market position and revenue potential, driving long-term growth and competitive advantage.

Negative Factors

Declining Revenue

Consistent revenue decline undermines financial health, limiting growth opportunities and potentially affecting investor confidence.

Negative Profit Margins

Persistent negative profit margins indicate operational inefficiencies, challenging the company's ability to generate sustainable profits.

Capital Expenditure Needs

Significant capital expenditure requirements may strain financial resources, impacting cash flow and delaying other strategic investments.

ARA US Hospitality Trust Business Overview & Revenue Model

Company Description

Listed on the Singapore Exchange on 9 May 2019, Acrophyte Hospitality Trust (“ACRO-HT”) is a hospitality stapled group comprising Acrophyte Hospitality Property Trust and Acrophyte Hospitality Management Trust. ACRO-HT invests in income-producing real estate assets used primarily for hospitality purposes located in the United States. As at the date of this announcement, ACRO-HT's portfolio comprises 33 select-service hotels with a total of 4,315 rooms across 17 states in the United States. ACRO-HT is managed by Acrophyte Hospitality Trust Management Pte. Ltd. and Acrophyte Hospitality Business Trust Management Pte. Ltd, (collectively known as the “Managers”). The Managers are wholly-owned subsidiaries of Acrophyte Asset Management Pte Ltd (“Acrophyte AM”).

How the Company Makes Money

ARA US Hospitality Trust generates revenue primarily through the leasing of its hotel properties to third-party operators, who manage day-to-day operations. The trust earns rental income based on fixed leases or percentage rent agreements tied to hotel performance, allowing it to benefit from both stable income and potential growth in revenue during high-demand periods. Additionally, the company may receive management fees from hotel operations, further contributing to its revenue streams. Significant partnerships with recognized hotel brands and operators enhance the trust's market presence, while strategic acquisitions of high-quality assets in desirable locations support its earnings growth.

ARA US Hospitality Trust Financial Statement Overview

Summary

ARA US Hospitality Trust faces significant financial challenges, with declining revenues and persistent net losses impacting profitability. While the balance sheet shows moderate leverage, the negative return on equity and profitability concerns remain critical issues. Cash flow improvements provide some optimism, but the company needs to address its revenue and profit margins to enhance financial stability.

Income Statement

The income statement shows a challenging environment for ARA US Hospitality Trust, with declining revenue and negative net profit margins in the TTM period. The gross profit margin has significantly decreased from previous years, indicating pressure on profitability. Despite a slight improvement in EBIT margin, the overall financial performance remains weak due to consistent net losses.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio below 1, which is relatively stable for the industry. However, the return on equity is negative, highlighting the company's struggle to generate returns for shareholders. The equity ratio remains stable, indicating a balanced capital structure despite financial challenges.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth, indicating better cash management. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio is less favorable, reflecting ongoing profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.55M	168.78M	175.50M	169.01M	130.67M	78.16M
Gross Profit	31.89M	97.61M	101.97M	94.24M	68.65M	-3.46M
EBITDA	26.71M	26.52M	29.96M	49.70M	17.83M	-8.28M
Net Income	-16.62M	-23.69M	-11.14M	9.51M	-13.81M	-94.47M
Balance Sheet
Total Assets	767.33M	780.95M	791.84M	826.39M	764.08M	736.40M
Cash, Cash Equivalents and Short-Term Investments	29.74M	31.57M	20.05M	50.62M	19.15M	26.75M
Total Debt	323.15M	323.26M	325.02M	325.87M	338.13M	371.01M
Total Liabilities	360.69M	357.04M	364.29M	366.73M	364.33M	387.23M
Stockholders Equity	406.64M	423.91M	427.56M	459.66M	399.75M	349.18M
Cash Flow
Free Cash Flow	20.76M	14.77M	-3.65M	27.55M	14.62M	-74.62M
Operating Cash Flow	32.29M	35.23M	45.11M	37.66M	23.88M	9.67M
Investing Cash Flow	18.72M	16.94M	-40.55M	28.88M	-9.26M	-94.93M
Financing Cash Flow	-48.24M	-40.65M	-35.13M	-35.07M	-22.22M	66.77M

ARA US Hospitality Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:XZL, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.26, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 122.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:XZL.

ARA US Hospitality Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ODBU	64 Neutral	$302.73M	10.44	6.49%	8.32%	-1.34%	-6.08%
OXMU	57 Neutral	$281.74M	93.33	0.38%	2.41%	-12.01%	―
TS0U	56 Neutral	S$1.96B	-25.54	-2.15%	5.94%	-11.65%	-137.98%
XZL	53 Neutral	$147.93M	-6.49	-5.62%	5.16%	-6.01%	-36.46%
CMOU	51 Neutral	$240.22M	-15.44	-2.12%	―	-1.55%	78.22%
BTOU	46 Neutral	$131.47M	-0.55	-48.17%	―	-27.66%	-106.71%

ARA US Hospitality Trust Corporate Events

Acrophyte Hospitality Trust Continues Strategic Review Amid Potential Transaction Talks

Acrophyte Hospitality Trust has announced that its ongoing strategic review and assessment of strategic options are still in progress. The company is in discussions with its Sponsor regarding a potential transaction involving its Stapled Securities. However, there is no certainty that a transaction will occur. Stakeholders are advised to exercise caution with their securities and consult professional advisers if needed.

Acrophyte Hospitality Trust to Release Q3 2025 Updates

Acrophyte Hospitality Trust, a Singapore-based entity, is set to release its business and operational updates for the third quarter of 2025. The announcement, scheduled for November 13, 2025, will provide stakeholders with insights into the company’s performance and strategic direction, potentially impacting its market positioning and investor relations.

Acrophyte Hospitality Trust Continues Strategic Review Amid Potential Transaction Talks

Acrophyte Hospitality Trust has announced that its strategic review and assessment of strategic options are ongoing, with discussions continuing with the Sponsor regarding a potential transaction involving its Stapled Securities. While there is no certainty of a transaction materializing, the Managers are committed to making necessary announcements in line with regulatory obligations should any significant developments occur. Stapled Securityholders are advised to exercise caution and seek professional advice when dealing with their securities to avoid prejudicial actions.

Acrophyte Hospitality Trust Updates Strategic Review Amidst Capital Expenditure Needs

Acrophyte Hospitality Trust has announced an update on its ongoing strategic review, assisted by DBS Bank Ltd., to address substantial capital expenditure needs. The company anticipates spending approximately US$100 million on brand-mandated renovations and maintenance from FY2025 to FY2027, which were previously deferred due to the COVID-19 pandemic. This expenditure is crucial to comply with brand standards and franchise terms, as non-compliance could lead to default notices.