American Hotel Income Properties REIT (HOT-UN) Q1 2026 earnings summary

Executive summary

• Initiated a strategic review to maximize unitholder value, retaining Robert W. Baird & Co. as financial advisor and considering further hotel sales.

• Advanced plans to strengthen financial position through asset sales and loan refinancings.

• Disposed of 18 hotel properties in 2025 for $161 million and 3 more in 2026 for $67 million; 6 additional properties under contract for $78 million.

• Revenue for Q1 2026 was $36.4 million, down 25.2% year-over-year due to asset sales.

• Diluted FFO per unit was ($0.03), down from ($0.02) in Q1 2025.

Financial highlights

• Q1 2026 same-store revenue was $36.2 million, up 2.2% year-over-year.

• NOI decreased 35.0% to $8.2 million, and NOI margin declined to 22.7% from 26.1% year-over-year.

• Debt to gross book value increased to 50.1% from 48.7% sequentially.

• Unrestricted cash at March 31, 2026, was $15.5 million, down from $36.4 million at year-end 2025, mainly due to $25 million Series C share redemption.

• Six hotels under contract for sale, expected to generate $78.4 million in gross proceeds.

Outlook and guidance

• No debt maturities until Q4 2026; plans to redeem remaining Series C Shares and convertible debentures in 2026.

• Six hotel properties under purchase and sale agreements expected to close in Q2 2026 for $78 million.

• April preliminary results show occupancy at 77%, ADR at $141, and RevPAR at $108, up 3% year-over-year.

• Ongoing capital improvements and property upgrades to maintain competitiveness.

• Strategic review may result in further asset sales to enhance liquidity and reduce debt.