Acrophyte Hospitality Trust (SGX:XZL) through its subsidiary, ARA USH Chicago, agreed to sell the Hyatt Place Memphis Primacy Parkway in Memphis, US, to Shivam Patel, for $7.8 million, according to a Wednesday filing with the Singapore Exchange.

Shares of the trust were down nearly 2% in Thursday trading.

The hotel features 126 rooms, and is considered a non-core and underperforming asset.

Proceeds raised from the divestment will be used to fund the REIT's capital expenditure needs.