American Hotel ( (AHOTF) ) has released its Q1 earnings. Here is a breakdown of the information American Hotel presented to its investors.
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American Hotel Income Properties REIT LP (AHIP) is a limited partnership focused on investing in hotel real estate properties across the United States, operating a portfolio of premium branded, select-service hotels under brands like Marriott, Hilton, and IHG Hotels. AHIP recently reported its financial results for the first quarter of 2025, highlighting a 5.7% growth in revenue per available room (RevPAR) and strategic moves to strengthen its financial position.
The company’s first-quarter performance was marked by the completion of three hotel property dispositions generating $41.2 million in gross proceeds and two refinancings totaling $144.3 million, which allowed for the full repayment of AHIP’s senior credit facility. Despite these achievements, AHIP reported a diluted funds from operations (FFO) per unit of $(0.02), a decline from the previous year’s $0.03. The average daily rate (ADR) increased by 3.1% to $135, and occupancy rose to 67.9%, contributing to the RevPAR increase.
Key financial metrics showed a mixed performance, with same property net operating income (NOI) decreasing by 2.8% to $12.4 million, and the NOI margin dropping by 120 basis points to 27.7%. The company has no debt maturities until late 2026, providing a stable financial outlook as it continues to execute its strategy of selling hotel properties to enhance liquidity and manage future obligations. AHIP’s management remains focused on addressing upcoming financial obligations, including the Series C Preferred Shares and Convertible Debentures, through potential further hotel sales or recapitalization strategies.
Looking ahead, AHIP plans to bring approximately 20 additional hotels to market in 2025, aiming to optimize its portfolio and financial standing. The company is poised to navigate the uncertain macroeconomic environment with a stable cash position, exploring strategic opportunities to deliver value to its unitholders.