American Hotel Income Properties REIT (HOT-UN) Q1 2025 earnings summary

Executive summary

• Portfolio of 46 hotels delivered 1.2% revenue growth and 2.4% RevPAR increase year-over-year, with Q1 2025 RevPAR up 5.7% to $92, driven by higher occupancy, ADR, and sale of lower-performing hotels.

• Margin pressures persisted due to cost inflation and higher undistributed expenses, with NOI margin down 107 basis points to 27.5%, though overall margin rose 120 bps to 26.1% after asset sales.

• Completed three hotel dispositions for $41.2 million; nine more under contract for $49.7 million, supporting leverage reduction and debt repayment.

• Completed $144.3 million in refinancings, fully repaying and terminating the senior credit facility.

• Strategic focus remains on cost control, asset sales, and strengthening the balance sheet to address 2026 debt obligations.

Financial highlights

• Same-store revenue rose 1% to $46.4 million compared to Q1 2024; total revenue was $48.6 million, down from $65.3 million year-over-year due to asset sales.

• NOI fell 22.1% to $12.7 million; NOI margin rose 120 bps to 26.1% after disposing of underperforming hotels.

• Normalized diluted FFO per unit was negative $0.02, down from $0.02 in Q1 2024; AFFO per unit diluted was $(0.05), compared to $(0.01) last year.

• Net loss was $22.4 million, compared to $9.5 million loss in Q1 2024.

• Unrestricted cash at quarter-end was $17.8 million, down from $27.9 million at year-end, mainly due to refinancing and debt repayment.

Outlook and guidance

• Cost pressures expected to remain elevated through 2025 despite stabilization in wages and productivity.

• No debt maturities until Q4 2026, assuming pending sales close as expected.

• Focused on raising capital over the next 12–18 months to redeem Series C shares and debentures maturing in late 2026.

• Plans to market up to 20 additional hotels in 2025, with sales dependent on market conditions and capital needs.