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AMERICAN HOTEL
(TSX:HOT.UN)
Select Model
Select Model
Rating:51Neutral
Price Target:
C$0.57
â–²(4.18% Upside)
Action:Reiterated
Date:09/26/26
The score is held back primarily by weak financial performance (TTM losses, negative free cash flow, and negative equity). Technicals are supportive with prices above key moving averages, but overbought signals temper the setup. The latest earnings call shows improving hotel demand and a credible balance-sheet plan, yet execution/liquidity risk remains high; valuation is also constrained by losses and no stated dividend yield.
Positive Factors
Hotel demand recovery
Improving RevPAR, occupancy and same-store revenue indicate recovering demand across the hotel portfolio rather than isolated property performance. If sustained, stronger room economics can support property-level cash flow, improve asset competitiveness and provide a more stable operating base over the next several quarters.
Negative Factors
Negative profitability and cash generation
Deeply negative operating and free cash flow means the business is not currently self-funding its operations and obligations. Combined with a substantial TTM net loss, this weakens financial flexibility, increases reliance on asset sales or financing and limits the ability to reinvest without external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Hotel demand recovery
Improving RevPAR, occupancy and same-store revenue indicate recovering demand across the hotel portfolio rather than isolated property performance. If sustained, stronger room economics can support property-level cash flow, improve asset competitiveness and provide a more stable operating base over the next several quarters.
Read all positive factors
AMERICAN HOTEL (HOT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$40.56M
Dividend Yield16.39%
Average Volume (3M)88.07K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-28.77%
EPS Growth19.22%
CountryCA
Employees11
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.72
Shares Outstanding71,164,920
10 Day Avg. Volume171,529
30 Day Avg. Volume88,070
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.04
Price to Sales (P/S)0.10
P/FCF Ratio-11.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)C$185.00M
AMERICAN HOTEL Business Overview & Revenue Model
Company Description
Operating as American Hotel Income Properties REIT LP (AHIP), this limited partnership specializes in the ownership and investment of hotel properties throughout the United States. Its current portfolio boasts 78 premium, select-service hotels, st...
How the Company Makes Money
American Hotel Income Properties REIT LP primarily makes money by owning hotel real estate and earning property-level cash flow generated by those hotels’ operations. Its main revenue driver is hotel operating revenue (especially room revenue) pro...
AMERICAN HOTEL Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operating performance showed clear recovery with RevPAR, occupancy and revenue gains across segments and encouraging preliminary July results. Management has executed sizable asset dispositions and financings that have generated meaningful proceeds and created a path to address legacy obligations. However, financial health is strained in the near term — FFO turned negative, NOI margins contracted due to cost pressures, unrestricted cash declined materially and leverage remains elevated. Management’s active strategic review and continued asset sales/refinancings are positive steps, but the lack of a definitive timeline and continued reliance on transactions to shore up the balance sheet leave meaningful execution and liquidity risk.Positive Updates
RevPAR and Operating Demand Recovery
Portfolio RevPAR was $116 in Q2 2026, up 4.1% year-over-year; occupancy improved to 78.5%, up 206 basis points; ADR increased 1.3% to $147. Portfolio RevPAR index was 119, up 3% year-over-year. Preliminary July results showed occupancy of 80%, ADR of $156 and RevPAR of $125 (≈ +9% vs July 2025).
Negative Updates
Negative Funds From Operations (FFO)
Diluted FFO was negative $0.01 in Q2 2026 versus diluted FFO of $0.06 in Q2 2025, marking a meaningful deterioration in per‑unit operating cash flow.
Read all updates
Q2-2026 Updates
Positive
Negative
RevPAR and Operating Demand Recovery
Portfolio RevPAR was $116 in Q2 2026, up 4.1% year-over-year; occupancy improved to 78.5%, up 206 basis points; ADR increased 1.3% to $147. Portfolio RevPAR index was 119, up 3% year-over-year. Preliminary July results showed occupancy of 80%, ADR of $156 and RevPAR of $125 (≈ +9% vs July 2025).
Read all positive updates
Company Guidance
The guidance centered on strengthening the balance sheet and completing debt and liability reductions: AHIP expects to be in a position to redeem the remainder of the $25 million Series C shares and the convertible debentures in 2026 through additional hotel sales, closings of four properties under PSA (~$32 million at a blended 4.6% cap rate expected in Q3) and a planned refinancing of an unencumbered property; cash was $21.5 million (plus $14.5 million restricted cash and $17.4 million available under portfolio loans) at June 30, 2026. 2026 capital spending is now estimated at $3.2 million of PIPs (revised down from $6.9M) and $5.0 million of FF&E (actual YTD PIP $2.3M and FF&E $1.7M), while operational metrics driving the plan include Q2 same-store revenue of $26.7 million (up 4.5%), RevPAR $116 (up 4.1%), occupancy 78.5% (up 206 bps), ADR $147 (up 1.3%), preliminary July RevPAR $125 (ADR $156, occupancy 80%, ~9% RevPAR growth year-over-year). Capital markets actions include an NCIB for up to 6.8 million units (10% public float; >700k units repurchased YTD at C$0.52 avg), recent financings (May initial loan proceeds $24.9M with up to $4.3M additional advances at SOFR+4.25%, 2‑year term), historical dispositions of 18 hotels in 2025 for $161M and eight hotels in 2026 for $134M (blended cap rate 7.6%), and portfolio leverage of 51% debt-to-gross-book-value (up 240 bps since Dec‑2025) with debt-to-EBITDA 8.9x (down 0.5x); Q2 diluted FFO was negative $0.01.AMERICAN HOTEL Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
14
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 155.61M | 191.07M | 256.88M | 280.52M | 281.37M | 241.31M |
| Gross Profit | -13.70M | 6.14M | 73.42M | 83.37M | 40.33M | 45.83M |
| EBITDA | -4.95M | -15.17M | 32.48M | -7.13M | 37.12M | 81.91M |
| Net Income | -53.69M | -75.26M | -46.98M | -81.49M | -39.64M | -15.61M |
Balance Sheet | ||||||
| Total Assets | 308.53M | 469.75M | 685.11M | 954.89M | 1.05B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 29.56M | 52.54M | 27.84M | 17.80M | 12.95M | 14.70M |
| Total Debt | 204.47M | 272.48M | 431.63M | 645.66M | 688.44M | 738.85M |
| Total Liabilities | 239.03M | 364.87M | 501.09M | 721.94M | 730.69M | 775.89M |
| Stockholders Equity | 47.80M | -559.25M | 138.92M | 189.38M | 278.54M | 331.03M |
Cash Flow | ||||||
| Free Cash Flow | -33.98M | -1.73M | 631.00K | 5.56M | 16.66M | 11.74M |
| Operating Cash Flow | -30.31M | -1.73M | 10.70M | 29.70M | 44.91M | 17.95M |
| Investing Cash Flow | 222.71M | 151.80M | 155.19M | 2.69M | 15.30M | -18.63M |
| Financing Cash Flow | -203.29M | -141.36M | -155.85M | -28.63M | -61.96M | -4.34M |
AMERICAN HOTEL Technical Analysis
Positive
0.55
Price Trends
0.54
Positive
0.54
Positive
0.51
Positive
Market Momentum
<0.01
Negative
52.11
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HOT.UN, the sentiment is Positive. The current price of 0.55 is below the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.54, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HOT.UN.
AMERICAN HOTEL Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | C$6.64B | 746.27 | 0.50% | 3.09% | 24.38% | -86.57% | |
57 Neutral | C$2.08B | 288.33 | 0.25% | 4.16% | 4.80% | -99.27% | |
52 Neutral | C$4.79B | -36.65 | -1.53% | 4.98% | -7.18% | -270.79% | |
51 Neutral | C$40.56M | -0.53 | 55.67% | 16.39% | -28.77% | 19.22% |
* Real Estate Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.