Acrophyte Hospitality Trust has agreed to sell the 127-room Hyatt Place Detroit Livonia hotel to NJA Management Group for approximately 13.5 million Singapore dollars, representing a 2.9 % discount to the asset’s independent valuation of roughly 13.9 million Singapore dollars.

The hotel, opened in 1998 and located in the Detroit suburb of Livonia, is one of the smallest and weakest performers in Acrophyte’s 32-property U.S. portfolio, contributing only 1.5 % of portfolio value and posting a 20.3 % gross operating profit margin in 2024 versus the trust’s 35.3 % average.

After paying an estimated 0.07 million Singapore dollars divestment fee and 0.67 million Singapore dollars of transaction costs, Acrophyte expects net proceeds of about 12.8 million Singapore dollars. Completion is targeted for the first quarter of 2026.

Management said the proceeds may be used to fund ongoing portfolio renovations, reduce debt, pursue higher-yield acquisitions or meet working-capital needs.

Pro forma calculations indicate that, had the sale been completed on Jan, 1 2024, distribution per stapled security would have risen from 1.772 US cents to 1.866 US cents. On a Dec, 31 2024 basis, net asset value per stapled security would have edged up from US$0.73 to US$0.735.

Given the relative figures under Singapore Exchange rules, the transaction is classified as a “Disclosable Transaction.”