American Hotel Income Properties REIT LP Reports Q1 2025 Results With 5.7% RevPAR Growth

Core Insights - American Hotel Income Properties REIT LP (AHIP) reported financial results for Q1 2025, highlighting significant progress in debt reduction and portfolio enhancement through asset sales and refinancing [1][3]. Financial Performance - For Q1 2025, AHIP's revenue was $48.6 million, down from $65.3 million in Q1 2024 [32]. - The company reported a loss of $22.4 million for Q1 2025, compared to a loss of $9.5 million in the same period last year [32]. - Diluted Funds From Operations (FFO) per unit was $(0.02) for Q1 2025, compared to $0.03 in Q1 2024 [20]. - Average Daily Rate (ADR) increased by 3.1% to $135, while occupancy rose by 150 basis points to 67.9% [36][17]. - Revenue per Available Room (RevPAR) increased by 5.7% to $92 [36][17]. Debt Management and Refinancing - AHIP completed the sale of three hotel properties for gross proceeds of $41.2 million, with a blended capitalization rate of 6.9% [6][27]. - The company refinanced loans totaling $144.3 million, fully repaying its senior credit facility [6][9]. - AHIP has no debt maturing until Q4 2026, providing time to navigate macroeconomic uncertainties [6][14]. Asset Dispositions - In 2024, AHIP disposed of 16 hotel properties for total gross proceeds of $165.2 million, improving portfolio quality [13]. - Nine additional hotel properties are under purchase and sales agreements, expected to generate $49.7 million in gross proceeds [29][27]. Operational Metrics - Same property Net Operating Income (NOI) was $12.4 million for Q1 2025, a decrease of 2.8% compared to $12.7 million in Q1 2024 [18]. - Same property NOI margin was 27.7%, down 120 basis points from 28.9% in the prior year [18][19]. - The company plans to bring approximately 20 additional hotels to market in 2025 to enhance liquidity and manage future obligations [16]. Capital Improvements - AHIP's 2025 capital plan includes $6.9 million for property improvement plans and $7.5 million for furniture, fixtures, and equipment improvements [31][30].