Eagle Hospitality Trust (SGX: LIW) was the talk of the town last year before its IPO due to its attractive valuation. It got worse when Urban Commons, its sponsor, failed their lease obligations to make repairs to the old Queen Mary, the REIT’s main asset.

There were also questionable related party transactions between the Eagle Hospitality Trust (EHT), its sponsor Urban Commons and an asset management firm, ASAP.

The last 2 nails to the coffin to all the EHT saga is when they reported a Q4 DPS 24.4% below IPO forecast and receiving a notice on default

Looking back to the previous article on EHT, the Trust itself has garnered more negatives than its prospects. 

Of course, no one would foresee this happening. But plenty of red flags back then would have served as warnings for potential bigger hiccups.

So what could we learn from the EHT fiasco?

1. Quality Is More Important Than Valuation

It’s far