American Hotel Income Properties REIT LP reports Q1 2025 results with increased ADR and occupancy.

From GlobeNewswire: 2025-05-14 19:30:00

American Hotel Income Properties REIT LP announced financial results for Q1 2025, including completed dispositions of 3 hotel properties for $41.2 million. Diluted FFO per unit was $(0.02), ADR increased 3.1% to $135, and occupancy was 67.9%. AHIP plans to continue selling hotel properties to enhance liquidity and reduce debt. CEO Jonathan Korol emphasized progress in reducing debt and high-grading the portfolio through asset sales and refinancings. In 2025, AHIP completed dispositions of 3 hotel properties and has 9 hotel properties under purchase and sales agreements for estimated total gross proceeds of $49.7 million. AHIP intends to address Series C Preferred Shares and Convertible Debentures over the next 12-18 months. The company aims to deliver value to unitholders through strategic opportunities. AHIP intends to sell approximately 20 additional hotels in 2025 to address future obligations. Over the coming months, AHIP will assess which hotels to market based on regional market factors, performance, and offers. The number of potential dispositions will depend on multiple factors, including the recapitalization of Series C Preferred Shares or Convertible Debentures. In the first quarter of 2025, ADR increased to $135, occupancy rose to 67.9%, and RevPAR increased to $92. Same property NOI decreased by 2.8% and NOI margin decreased by 120 bps due to various factors such as government travel restrictions and higher operating expenses. Debt to gross book value was 48.7% as of March 31, 2025, a decrease of 60 bps compared to December 31, 2024. Debt to EBITDA was 7.9x as of March 31, 2025, a decrease of 0.1x compared to December 31, 2024. The interest coverage ratio was 1.7x as of March 31, 2025, consistent with December 31, 2024. Management will host a conference call on May 15, 2025, to discuss the financial and operational results for Q1 2025. American Hotel Income Properties REIT LP (AHIP) announced its financial results for the three months ended March 31, 2025, including completed dispositions of three hotel properties for $41.2 million. Diluted FFO per unit was $(0.02), ADR increased 3.1% to $135, and occupancy reached 67.9%. AHIP plans to continue its strategy of selling hotel properties to enhance liquidity and reduce debt. CEO Jonathan Korol emphasized the progress made in reducing debt and high-grading the portfolio through asset sales and refinancings. In 2025, AHIP completed the dispositions of 3 hotel properties for total gross proceeds of $41.2 million and has 9 hotel properties under purchase and sales agreements for estimated total gross proceeds of $49.7 million. AHIP also completed several refinancings in the first quarter for total gross proceeds of $144.3 million, fully repaying the senior credit facility. The Board of Directors, along with management, has implemented a plan to strengthen AHIP’s financial position and preserve unitholder value by reducing debt and improving the quality of the portfolio through asset sales and loan refinancings. The initiatives and progress made to date are outlined in the news release. In Q1 2025, ADR increased to $135, occupancy rose to 67.9%, and RevPAR increased to $92. However, same property NOI decreased by 2.8% and NOI margin decreased by 120 bps compared to the same period in 2024. Debt to gross book value was 48.7%, debt to EBITDA was 7.9x, and the interest coverage ratio was 1.7x. Management will host a conference call on May 15, 2025, to discuss the financial and operational results for Q1 2025.



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