American Hotel Income Properties REIT (TSE:HOT.UN – Get Free Report) announced its earnings results on Thursday. The company reported C$0.01 earnings per share for the quarter, FiscalAI reports. The company had revenue of C$44.18 million during the quarter. American Hotel Income Properties REIT had a negative net margin of 34.67% and a negative return on equity of 34.11%.
Here are the key takeaways from American Hotel Income Properties REIT’s conference call:
- Strategic review remains ongoing as AHIP evaluates asset sales, refinancings, and other alternatives to increase unitholder value, reduce debt, and strengthen its balance sheet; no definitive timeline or transaction has been established.
- Hotel operating performance improved, with second-quarter RevPAR up 4.1% to $116, occupancy rising 206 basis points to 78.5%, and portfolio RevPAR growth continuing for five consecutive months. Preliminary July RevPAR was approximately 9% above the prior year.
- Higher repairs, maintenance, utilities, and other expenses pressured profitability, reducing NOI margin by 146 basis points to 35%; diluted FFO declined to negative $0.01 per unit from $0.06 a year earlier.
- AHIP has sold eight hotels for $134 million in 2026 and expects four additional dispositions to generate approximately $32 million, while management plans to use sales and refinancing proceeds to redeem the remaining Series C shares and convertible debentures by year-end.
- Liquidity declined to $21.5 million from $36.4 million at year-end, while debt to gross book value increased to 51% and debt to EBITDA remained elevated at 8.9 times, underscoring ongoing balance-sheet pressures.
American Hotel Income Properties REIT Price Performance
American Hotel Income Properties REIT stock opened at C$0.52 on Friday. American Hotel Income Properties REIT has a 1-year low of C$0.26 and a 1-year high of C$0.62. The business has a fifty day moving average price of C$0.54 and a 200-day moving average price of C$0.50. The company has a debt-to-equity ratio of 276.63, a current ratio of 0.44 and a quick ratio of 0.36. The stock has a market capitalization of C$37.31 million, a price-to-earnings ratio of -0.62 and a beta of -1.06.
About American Hotel Income Properties REIT
American Hotel Income Properties REIT LP is a trust that invests in hotel real estate properties. The company’s primary business is owning Premium Branded hotels, which have franchise agreements with international hotel brands including Marriott, Hilton, and IHG. It generates revenue from the room, food, beverage, and other revenue. The other revenue is comprised of conference room rentals, parking revenues, and other incidental income.
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