VANCOUVER, British Columbia, Nov. 06, 2025 (GLOBE NEWSWIRE) — American Hotel Income Properties REIT LP (“AHIP“, or the “Company“) (TSX:HOT, TSX:HOT, TSX:HOT), today announced its financial results for the three and nine months ended September 30, 2025.
All amounts presented in this news release are in United States dollars (“U.S. dollars“) unless otherwise indicated.
2025 THIRD QUARTER HIGHLIGHTS
Same Property ADR(1) was $141 for the third quarter of 2025 an increase of 0.7% compared to the same period of 2024.
Same Property Occupancy(1) was 75.0% for the third quarter of 2025, an increase of 70 bps compared to the same period of 2024.
Same Property RevPAR(1) was $106 for the third quarter of 2025, increased by 1.9% to compared to the same period of 2024.
Same property NOI was $13.7 million for the third quarter of 2025, a decrease of 8.1% compared to $14.9 million for the same period of 2024.
Same property NOI margin was 29.0% for the third quarter of 2025, a decrease of 320 bps compared to 32.2% for the same period of 2024.
RevPAR(1) increased by 10.5% to $106 for the third quarter of 2025, compared to $95 for the same period of 2024.
Diluted FFO per unit(1) and normalized diluted FFO per unit(1) were $0.02 for the third quarter of 2025, compared to $0.06 and $0.07 respectively for the same period of 2024.
Completed the disposition of one hotel property during the quarter for total gross proceeds of $17.4 million at a blended Cap Rate of 6.9% on 2024 annual hotel EBITDA.
AHIP has no debt maturities until the fourth quarter of 2026.
AHIP intends to continue its strategy to sell hotel properties to enhance liquidity, reduce debt and manage future financial obligations. AHIP currently has seven hotels under PSA for expected gross proceeds of $77.0 million, with approximately ten additional hotels currently being marketed for sale.
“AHIP continues to make significant progress on our plan to reduce debt and high-grade the portfolio through asset sales and loan refinancings,” said Jonathan Korol, CEO. “Thus far in 2025, AHIP completed the dispositions of thirteen hotel properties for total gross proceeds of $103.8 million. AHIP currently has seven further hotel properties under purchase and sale agreements for estimated total gross proceeds of $77.0 million. In addition, AHIP is currently marketing approximately ten hotels. We continue to see strong interest in our hotels from local owners for most of the properties we have in the market.”
“Dispositions completed and under contract in 2025 have a combined Cap Rate(1) of 7.7% at $97,000 per key, demonstrating value beyond AHIP’s current trading levels on its remaining assets.”
“At the end of the quarter, AHIP has $26 million in cash and no debt maturing until the fourth quarter of 2026. With the asset sales and refinancings completed in 2025, AHIP has sufficient time with a stable cash position to consider alternatives to address its future obligations related to the preferred shares and convertible debentures in an orderly manner. Alternatives may include further hotel sales, or full or partial recapitalization of the Series C Shares and/or the Debentures or a combination thereof. We will be considering all opportunities to deliver value to unitholders.”
(1) Non-IFRS and other financial measures. See “NON-IFRS AND OTHER FINANCIAL MEASURES” section of this news release.
INITIATIVES TO STRENGTHEN FINANCIAL POSITION AND TO IMPROVE UNITHOLDER VALUE
The Board of Directors (the “Board“), together with management, have implemented a plan to strengthen AHIP’s financial position and to improve unitholder value. Certain initiatives, and progress made to date, are outlined below.
ADDRESSING 2026 BALANCE SHEET OBLIGATIONS
In 2024, AHIP made significant progress on its plan to reduce debt and improve the quality of its portfolio through asset sales and loan refinancings. AHIP disposed of sixteen hotel properties in 2024 for total gross proceeds of $165.2 million, which has improved the overall portfolio asset quality with pro forma increases in RevPAR, NOI margin and EBITDA per hotel, while also significantly reducing leverage. During the first three quarters of 2025, AHIP completed the disposition of twelve hotel properties for total gross proceeds of $90.8 million and two loan refinancings for total gross proceeds of $144.3 million. The net proceeds from these sales along with a portion of the proceeds from the recent loan refinancings, were used to repay the CMBS loans secured by those properties and a portion of the Portfolio Loan. These transactions significantly improved the overall duration of AHIP’s outstanding loans and increased AHIP’s cash balance.
AHIP has no secured debt maturing until the fourth quarter of 2026, with a $22.3 million CMBS loan maturing in November 2026 and a $30.6 million CMBS loan maturing in December 2026. For the November 2026 CMBS loan maturity, AHIP is currently marketing each hotel in this portfolio for sale. For the December 2026 CMBS loan maturity, three of the five hotels securing the loan in the portfolio are under contract for gross proceeds of $34.6 million, which is sufficient to repay the current loan balance of $31.4 million and, if completed, will leave two hotels unencumbered by debt at closing. Effective January 28, 2026, the dividend rate on the $50.0 million outstanding Series C Preferred Shares of U.S. Subsidiary Inc. (“Series C Shares“) increases from 9.0% to 14.0% per annum and certain other provisions under the Investor Rights Agreement will be triggered by this date, which will reduce AHIP’s flexibility if the Series C Shares have not been fully redeemed as of such date. AHIP’s 6.0% unsecured subordinated convertible debentures (the “Debentures“) mature on December 31, 2026.
With the recently completed asset sales and refinancings, AHIP has an improving unrestricted cash position and has sufficient time to consider alternatives to address these future obligations in an orderly manner. Alternatives may include further hotel sales, full or partial recapitalization of the Series C Shares and/or the Debentures or a combination thereof. Regarding potential dispositions, AHIP currently has seven hotels under contract for sale and approximately ten additional hotels being marketed. Over the remainder of 2025 and into 2026, AHIP will assess which of the marketed hotels will provide the most attractive combination of certainty, valuation and net proceeds to address these future obligations. The number of potential hotel dispositions will be dependent on, among other things, regional market factors, hotel performance, hotel size, nature and value of offers and whether any portion of the Series C Shares and/or Debentures are recapitalized.
2025 THIRD QUARTER REVIEW
FINANCIAL AND OPERATIONAL HIGHLIGHTS
For the three months ended September 30, 2025, ADR increased 6.0% to $141, and occupancy increased by 360 bps to 75.1%, compared to the three months ended September 30, 2024. Overall, improved ADR and occupancy resulted in an increase of 11.6% in RevPAR to $106, compared to the three months ended September 30, 2024. The improved performance is attributable to the disposition of hotel properties with lower-than-average portfolio RevPAR and an increase in same property RevPAR of 1.9%.
NOI and normalized NOI were $12.9 million for the three months ended September 30, 2025, a decrease of 34.3%, compared to NOI and normalized NOI of $19.6 million for the three months ended September 30, 2024. The decrease in NOI was primarily due to the disposition of the sixteen hotel properties completed in 2024 and the twelve hotel properties in the nine months ended September 30, 2025.
NOI margin was 27.1% for the three months ended September 30, 2025, a decrease of 270 bps compared to 29.8% for the same period of 2024. The decrease in NOI margin was due to higher operating expenses as a result of general cost inflation, and repair and maintenance expenses partially offset by the disposal of underperforming hotels.
Diluted FFO per unit and normalized diluted FFO per unit for the three months ended September 30, 2025, was $0.02 compared to diluted FFO per unit of $0.06 and normalized diluted FFO per unit of $0.07 for the three months ended September 30, 2024. The decrease in diluted FFO per unit and normalized diluted FFO per unit was mainly due to lower NOI as a result of sold properties and higher operating expenses on same properties, partially offset by lower corporate and administrative expenses in the current year.
As expected, RevPar on a same property basis increased in the third quarter, after a temporary decrease in the second quarter of 2025. We continue to expect growth on this measure for the remainder of the year accompanied by continued challenges with margins due to elevated costs.
SAME PROPERTY KPIs
The following table summarizes key performance indicators (“KPIs“) for the portfolio for the five most recent quarters with a comparison to the same period in the prior year on a same-property basis.
KPIs
Q3 2025
Q2 2025
Q1 2025
Q4 2024
Q3 2024
ADR
$141
$139
$138
$134
$140
Change compared to same period in prior year – % increase/(decrease)
0.7%
1.4%
(1.1%)
1.0%
1.3%
Occupancy
75.0%
76.3%
70.2%
70.5%
74.3%
Change compared to same period in prior year – bps increase/(decrease)
70
(30)
265
255
54
RevPAR
$106
$106
$97
$94
$104
Change compared to same period in prior year – % increase/(decrease)
1.9%
(1.9%)
2.8%
4.8%
2.1%
NOI
$13,652
$14,606
$11,721
$10,958
$14,851
Change compared to same period in prior year – % increase/(decrease)
(8.1%)
(5.8%)
(6.4%)
(2.0%)
(0.2%)
NOI Margin
29.0%
32.7%
29.0%
25.9%
32.2%
Change compared to same period in prior year – bps increase/(decrease)
(320)
(160)
(96)
(182)
(79)
In the third quarter of 2025, same property ADR was $141, an increase of 0.7% compared to the same period in 2024. Same property occupancy increased by 70 bps to 75% in the current quarter, compared to the same period in 2024. The increase in these measures is primarily attributable to improved business travel, partially offset by a reduction in group travel, with particular strength in oil gas markets in Texas. Overall, the increase in ADR and occupancy resulted in a 1.9% increase in RevPAR.
Same property NOI decreased by 8.1% and same property NOI margin decreased by 320 bps in the current quarter, compared to the same period in 2024. The decrease in same property NOI and NOI margin was primarily driven by increases in electricity costs, sales and marketing and maintenance expenses.
LEVERAGE AND LIQUIDITY
KPIs
Q3 2025
Q2 2025
Q1 2025
Q4 2024
Q3 2024
Restated
Debt-to-GBV
48.7%
48.7%
48.7%
49.3%
50.0%
Debt-to-EBITDA
9.1x
8.1x
7.9x
8.0x
9.1x
Debt to gross book value was 48.7% as at September 30, 2025, a decrease of 60 bps compared to December 31, 2024. Debt to EBITDA as at September 30, 2025 was 9.1x, an increase of 1.1x compared to December 31, 2024. The change in debt to gross book value and debt to EBITDA ratios was driven by net proceeds from completed dispositions used to reduce outstanding debt.
As at September 30, 2025, AHIP had an unrestricted cash balance of $25.6 million compared to $27.8 million as at December 31, 2024. The reduction in cash was primarily due to net outflows from completed refinancings and debt repayment, which resulted in one property becoming unencumbered during the first quarter of 2025. As at September 30, 2025, AHIP held a restricted cash balance of $24.7 million and had an additional $23.2 million available under the Portfolio Loan for capital improvements related to the properties secured by the loan. As at November 6, 2025, AHIP had an unrestricted cash balance of approximately $32.5 million.
HOTEL DISPOSITIONS
2025 Hotel Dispositions Summary
Hotel
Location
Gross Proceeds
(millions of dollars)
Keys
Gross proceeds per key
Cap Rate(1)
on 2024 annual hotel EBITDA
Actual/Estimated Closing Date
Completed Dispositions:
Homewood Suites Allentown Bethlehem Airport
Bethlehem, PA
$11.7
113
$104,000
7.5%
March 27, 2025
Residence Inn Arundel Mills BWI Airport
Hanover, MD
$18.0
131
$137,000
8.5%
March 27, 2025
TownePlace Suites Arundel Mills BWI Airport
Hanover, MD
$11.5
109
$106,000
3.9%
March 27, 2025
Total completed in Q1 2025
$41.2
353
$117,000
6.9%
Hampton Inn Chickasha
Chickasha, OK
$4.0
63
$63,000
5.2%
May 22, 2025
Holiday Inn Express & Suites Chickasha
Chickasha, OK
$4.4
62
$71,000
4.3%
May 22, 2025
Holiday Inn Express & Suites Dubuque West
Dubuque, IA
$3.0
87
$34,000
16.6%
May 22, 2025
Holiday Inn Express & Suites Nevada
Nevada, MO
$5.2
68
$76,000
10.1%
May 22, 2025
Holiday Inn Express & Suites Mattoon
Mattoon, IL
$4.0
69
$58,000
9.8%
May 22, 2025
Holiday Inn Express & Suites Emporia
Emporia, KS
$5.9
68
$87,000
11.4%
May 22, 2025
Holiday Inn Express & Suites Jacksonville
South Jacksonville, IL
$3.9
69
$57,000
(0.4%)
May 22, 2025
Holiday Inn Express & Suites Oklahoma City Bethany
Bethany, OK
$1.8
69
$28,000
(12.7%)
June 20, 2025
Total completed in Q2 2025
$32.2
555
$58,000
6.9%
Homewood Suites Kalamazoo Portage
Portage, MI
$17.4
97
$179,000
6.9%
August 7, 2025
Total completed in Q3 2025
$17.4
97
$179,000
6.9%
Total completed in 2025
$90.8
1,005
$90,000
6.9%
Dispositions Under Contract at September 30, 2025:
Fairfield Inn & Suites Asheboro
Asheboro, NC
$7.8
87
$90,000
11.4%
Q4 2025
Courtyard Woodbury
Woodbury, MN
$11.3
120
$94,000
7.8%
Q4 2025
Residence Inn St Paul Woodbury
Woodbury, MN
$15.0
116
$129,000
9.2%
Q4 2025
Residence Inn Baltimore White Marsh(2)
Baltimore, MD
$13.0
131
$99,000
8.6%
Q4 2025
TownePlace Suites Pittsburgh Airport Robinson Township
Pittsburgh, PA
$8.3
93
$89,000
7.5%
Q4 2025
Staybridge Suites Tampa
Tampa, FL
$11.5
100
$115,000
6.4%
Q4 2025
Holiday Inn Express & Suites Sarasota
Sarasota, FL
$11.5
101
114,000
8.5%
Q4 2025
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