Acrophyte Hospitality Trust (ACRO-HT) on Sep, 27 2025 said its managers have estimated about 100 million Singapore dollars of capital expenditures will be needed between the financial years ending Dec, 31 2025 and Dec, 31 2027 for brand-mandated renovations, building maintenance and equipment replacement across 26 of the stapled group’s 32 U.S. hotels.

The managers, assisted by DBS Bank, are reviewing strategic options to fund the works. Possible measures include raising additional debt—though current aggregate leverage of 42.4% allows for only about 58.6 million Singapore dollars of additional borrowings before reaching the 50% regulatory limit—equity fundraising, recalibrating the hotel portfolio, divesting selected assets, or pursuing a broader transaction involving the stapled securities or the entire portfolio.

Other considerations highlighted in the update include ACRO-HT’s distribution per stapled security remaining below pre-pandemic levels, its units trading at an average 0.32 times net asset value over the past year, and macroeconomic headwinds that could weigh on U.S. hotel demand.

As an interim measure, the managers are also contemplating the temporary suspension or reduction of distributions, noting that fiscal-2024 distributions totalled about 9.3 million Singapore dollars.

The strategic review is ongoing and the managers said there is no certainty that any transaction will proceed. Stapled securityholders were advised to exercise caution when dealing in the securities.