To be honest, I actually wasn’t planning to do a review on Eagle Hospitality Trust. But then I realised it was a long weekend, so I figured what the heck.
Anyway after going through the prospectus, it turns out that Eagle Hospitality Trust is similar to ARA US Hospitality Trust in many ways. So a lot of my comments in the review on ARA Us Hospitality Trust will hold true here as well, such as:
Poor alignment of interests between sponsor and unitholders – Sponsor only holds a 15% stake post listing. No big institutional cornerstones – this IPO is mainly taken up by private wealth, which doesn’t exactly inspire confidence. Small cap REIT means that future growth will be funded via equity offerings – If you buy into this REIT, you should be prepared to cough up capital for future equity offerings, as is likely to...
