From GlobeNewswire: 2024-05-07 19:30:00

American Hotel Income Properties REIT LP announced its first quarter financial results for 2024. Highlights include diluted FFO per unit of $0.03, a 230 bps increase in occupancy to 66.4%, and revenue of $66.5 million. NOI for the quarter was $17.2 million, a decrease of 8.0%. Available liquidity was $25.5 million as of March 31, 2024.

CEO Jonathan Korol stated that AHIP’s hotel properties showed strong demand with an increase in portfolio RevPAR and occupancy compared to Q1 2023. However, costs remain high due to macroeconomic conditions, impacting operating margins. AHIP has taken steps to preserve cash and strengthen financial stability in 2024, including suspending distributions and reducing hotel management fees.

For the three months ended March 31, 2024, occupancy increased by 230 bps to 66.4%, leading to a 2.4% increase in RevPAR compared to the same period in 2023. However, NOI and normalized NOI decreased by 8.0% and 12.2% respectively. Higher operating expenses, including increased labor costs and property insurance premiums, contributed to the decline in NOI margin to 25.9%.

Debt to gross book value as of March 31, 2024, was 52.2%, slightly higher than December 31, 2023. Debt to TTM EBITDA was 10.5x, up from 9.6x in March 31, 2023, primarily due to lower NOI. Liquidity stood at $25.5 million as of March 31, 2024, with an unrestricted cash balance of $15.5 million and $10.0 million under the revolving credit facility. AHIP has 70.6% of its debt at fixed interest rates.

In March 2024, AHIP completed the sale of non-core hotel properties in Virginia and Pennsylvania, generating gross proceeds of $8.55 million and $8.25 million respectively. Proceeds will be used to pay down outstanding amounts under the term loans. Additionally, AHIP entered into agreements to sell two properties in Texas for a combined $17.6 million. Proceeds from these dispositions will also be used to reduce debt.



Read more at GlobeNewswire:: American Hotel Income Properties REIT LP Reports Q1 2024