Acrophyte Hospitality Trust's (SGX:XZL) subsidiary, ARA USH Chicago, agreed to sell the 127-room Hyatt Place Detroit Livonia, in the U.S., to NJA Management for $10 million, according to a Wednesday filing with the Singapore Exchange.

The consideration represents a 2.9% discount to the independent valuation of the property.

The disposal of the non-core underperforming asset is part of the trust's strategy to avoid unnecessary capital outlay and to redeploy resources towards higher-performing assets.

Proceeds from the disposal will be used to help with renovations of its existing portfolio, pare down debt and to meet working capital needs.