Eagle Hospitality Trust (EHT) went for IPO on 25 May 2019 at an Offer price of US$0.78. In less than a year, EHT was suspended from trading as of 24 Mar 2020. The last traded price before it was suspended was US$0.137. That was a 82% loss from the IPO price, excluding dividends.

What led to this disastrous performance in such a short time?

Issue #1: The Queen Mary

The Queen Mary is a retired ocean-liner that has been converted to a hotel and is one of the 18 properties held by EHT. The ship received bad press in October 2019 – The Edge Singapore reported that the condition of the ship was bad based on inspection reports:

…several years of abandonment evident in issues such as broken or missing handrails and splitting carpets patched with duct-tape.

The article added that Urban Commons (UC) (also the sponsor of EHT), who is responsible for the repair, has been given a warning by the City of Long Beach that UC may risk losing the lease because of...