American Hotel Income Properties REIT LP (AHIP) announced its financial results for the second quarter of 2025, with diluted FFO per unit at $0.06 and normalized FFO per unit at $0.06. ADR increased to $140, occupancy to 75.7%, and RevPAR to $106. Same property NOI decreased by 5.4% to $15.1 million. AHIP completed dispositions of eight hotel properties for $32.2 million. The company has no debt maturities until Q4 2026.

AHIP’s initiatives to strengthen its financial position include reducing debt and high-grading the portfolio through asset sales and loan refinancings. In the first half of 2025, AHIP completed the disposition of 11 hotel properties for $73.4 million. The company has no secured debt maturing until Q4 2026. AHIP plans to consider alternatives to address future obligations in an orderly manner, which may include further hotel sales or recapitalization of Series C Shares and Debentures.

In the second quarter of 2025, AHIP saw improvements in ADR, occupancy, and RevPAR compared to the same period in 2024. However, NOI and normalized NOI decreased by 30.5% to $17.4 million. Same property KPIs for the portfolio showed a decrease in ADR, occupancy, and RevPAR, with NOI margin decreasing by 150 bps. Debt to gross book value was 48.7%, and debt to EBITDA was 8.1x.

AHIP completed the dispositions of 11 hotel properties in the first half of 2025 for total gross proceeds of $73.4 million, with a blended Cap Rate of 6.9% on 2024 annual hotel EBITDA. The net proceeds were used to repay CMBS mortgage loans. AHIP has two hotel properties under purchase and sale agreements for estimated total gross proceeds of $25.2 million, expected to close in Q3 and Q4 2025. The company plans to use the net proceeds to repay allocated loan balances.

AHIP’s capital projects include hotel brand mandated property improvement plans and FF&E improvements. The company’s 2025 capital expenditures are estimated at $1.9 million in PIPs and $7.5 million in FF&E improvements. PIP and FF&E expenditures will be funded through existing restricted cash and operating activities. Actual capital spend on PIPs and FF&E for the six months ended June 30, 2025, was $0.3 million and $4.6 million, respectively.

Read more at GlobeNewswire: American Hotel Income Properties REIT LP Reports Q2 2025