American Hotel Income Properties REIT LP (AHOTF) Q3 2025 Earnings Call Highlights: Revenue ...

This article first appeared on GuruFocus.

Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Total revenue grew by 2.1% and RevPAR finished at $106, a 1.9% improvement over Q3 2024. The RefPAR index increased by 170 basis points, indicating improved market share. Completed the disposition of one hotel property for $17.4 million, contributing to a total of $90.8 million from 12 hotel sales in 2025. Successfully completed two loan refinancings for total gross proceeds of $144.3 million, improving the loan maturity profile. AIP's unrestricted cash position remains stable, providing flexibility to address future obligations.

Negative Points

Operational expenses, including GM turnover and elevated maintenance and utilities, continue to negatively impact the bottom line. Group revenue dropped 3% year over year due to sales performance and market demand shifts. NOI margin decreased by 322 basis points to 29% compared to Q3 2024. Reliance on third-party labor increased, reversing prior trends of year-over-year declines. Debt to EBITDA increased to 9.1 times, up from the previous year, indicating higher leverage.

Q & A Highlights

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Q: Can you provide an overview of the financial performance for the third quarter? A: Jonathan Cole, CEO, reported that American Hotel Income Properties REIT LP (AHIP) saw a 2.1% increase in total revenue and a 1.9% improvement in RevPAR, reaching $106. This growth was driven by higher demand for extended stay properties. The RefAR index increased by 170 basis points, indicating improved market share.

Q: What challenges are impacting operational expenses? A: Bruce P Tay, COO, highlighted ongoing challenges with GM turnover and elevated maintenance and utilities expenses, which are negatively affecting the bottom line. Despite stable room expenses, overall expenses are outpacing revenue growth, leading to margin compression.

Q: How is the disposition program progressing? A: Jonathan Cole, CEO, stated that AHIP completed the disposition of one hotel property for $17.4 million in Q3, with a total of 12 properties sold in 2025 for $90.8 million. Eight more properties are under agreements, expected to close in Q4 2025, focusing on low EBITDA, high CapEx properties.

Q: What are the key financial metrics for the quarter? A: Travis Beatty, CFO, reported a 1.8% increase in same-store revenue to $47 million. Normalized diluted FFO was $0.02 per unit, down from $0.07 in Q3 2024. The unrestricted cash balance was $25.6 million, with a debt-to-gross book value of 48.7%.

Story Continues

Q: What strategic steps has AHIP taken to strengthen its financial position? A: Jonathan Cole, CEO, explained that AHIP has made significant progress in addressing debt obligations through asset sales and loan refinancing, improving the loan maturity profile. The company is exploring alternatives like further hotel sales and recapitalization to manage future obligations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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