American Hotel Income Properties REIT LP Reports Q3 2025 Results With Same Property 1.9% RevPAR Growth and Provides Corporate Update

Core Insights - The company reported its financial results for the three and nine months ended September 30, 2025, highlighting significant progress in reducing debt and enhancing portfolio quality through asset sales and refinancings [1][3]. Financial Performance - For Q3 2025, the Average Daily Rate (ADR) was $141, a 0.7% increase from Q3 2024, while occupancy rose to 75.0%, up 70 basis points year-over-year [6][10]. - Revenue for Q3 2025 was $47.6 million, a decrease of 27.6% compared to $65.7 million in Q3 2024, primarily due to the sale of hotel properties [27][33]. - Net Operating Income (NOI) for Q3 2025 was $12.9 million, down 34.3% from $19.6 million in Q3 2024, attributed to the sale of properties and increased operating expenses [11][34]. Asset Dispositions - In 2025, the company completed the sale of thirteen hotel properties for total gross proceeds of $103.8 million, with an additional seven properties under contract for an estimated $77.0 million [3][24]. - The completed dispositions in 2025 had a combined capitalization rate of 7.7%, indicating value above the current trading levels of remaining assets [3][23]. Debt Management - The company has no debt maturing until Q4 2026, with a cash balance of $26 million at the end of Q3 2025, allowing for strategic planning regarding future obligations [3][8]. - Debt-to-gross book value was reported at 48.7%, a decrease from 50.0% at the end of 2024, while debt-to-EBITDA increased to 9.1x [19][30]. Future Outlook - The company is considering various alternatives to address future obligations related to preferred shares and convertible debentures, including further hotel sales and recapitalization strategies [3][9]. - The Board has determined that it is no longer in the best interests of the company for its U.S. subsidiary to maintain REIT status, providing more flexibility in managing financial obligations and pursuing asset sales [36][38].