VANCOUVER, British Columbia, May 14, 2026 (GLOBE NEWSWIRE) — American Hotel Income Properties REIT LP (“AHIP“, or the “Company“) (TSX:HOT, TSX:HOT, TSX:HOT), today announced its financial results for the three months ended March 31, 2026.
All amounts presented in this news release are in United States dollars (“U.S. dollars“) unless otherwise indicated.
2026 FIRST QUARTER HIGHLIGHTS
- Same Property ADR(1) was $142 for the first quarter of 2026 an increase of 2.2% compared to $139 for the same period of 2025.
- Same Property Occupancy(1) was 68.7% for the first quarter of 2026, a decrease of 30 bps compared to 69.0% for the same period of 2025.
- Same Property RevPAR(1) was $98 for the first quarter of 2026, an increase of 2.1% compared to $96 for the same period of 2025.
- Same property NOI(1) was $8.7 million for the first quarter of 2026, a decrease of 13.1% compared to $10.1 million for the same period of 2025.
- Same property NOI margin(1) was 24.1% for the first quarter of 2026, a decrease of 430 bps compared to 28.4% for the same period of 2025.
- RevPAR(1) increased by 5.4% to $97 for the first quarter of 2026, compared to $92 for the same period of 2025.
- Diluted FFO per unit(1) and normalized diluted FFO per unit(1) were ($0.03) for the first quarter of 2026, compared to ($0.02) for the same period of 2025.
- Revenue decreased 25.2% to $36.4 million for the first quarter of 2026, compared to $48.6 million for the same period of 2025.
- NOI decreased 35.0% to $8.2 million for the first quarter of 2026, compared to $12.7 million for the same period of 2025.
- AHIP had $28.6 million in available liquidity as at March 31, 2026, compared to $51.5 million as at December 31, 2025. The available liquidity of $28.6 million was comprised of an unrestricted cash balance of $15.5 million and borrowing availability of $13.1 million under the Portfolio Loan for capital improvements related to the properties secured by the loan.
- AHIP has no debt maturities until the fourth quarter of 2026.
- On March 13, 2026, AHIP redeemed $25.0 million of the $50.0 million stated face value of the Series C Shares.
- As of May 4, 2026, AHIP announced a review of strategic alternatives to maximize unitholder value. This review may result in further hotel sales to enhance liquidity, reduce debt and manage future financial obligations.
“AHIP continues to make progress on our plan to reduce debt and high-grade the portfolio through asset sales and loan refinancings,” said John O’Neill, CEO. “The portfolio improvements are reflected in RevPAR(1) growth of 5.4% and same property RevPAR(1) growth of 2.1%. In 2025 and 2026, AHIP completed the dispositions of 21 hotel properties for total gross proceeds of $219.9 million. AHIP currently has six additional hotel properties under purchase and sale agreements for estimated total gross proceeds of $78.4 million which are expected to close by the end of the second quarter 2026. The dispositions completed in 2025 have a blended Cap Rate(1) of 7.6%, demonstrating value beyond AHIP’s current unit price for its current portfolio.”
“At the end of March 2026, AHIP had $15.5 million in cash and no debt maturing until the fourth quarter of 2026. With closings of hotels currently under contract, expected refinancing of unencumbered properties, and additional planned hotel sales, we plan to be in a position to redeem the remainder of the Series C Shares and the convertible debentures in 2026.”
“On May 4, 2026, AHIP announced its Board of Directors has initiated a review of strategic alternatives to maximize unitholder value. We will continue to evaluate a range of alternatives, among other things, to reduce debt and improve our balance sheet.”
INITIATIVES TO STRENGTHEN FINANCIAL POSITION AND IMPROVE UNITHOLDER VALUE
REVIEW OF STRATEGIC ALTERNATIVES
On May 4, 2026, AHIP announced that its Board of Directors (the “Board“) initiated a review of strategic alternatives (the “Strategic Review“) to maximize unitholder value. During the Strategic Review, the Board will analyze and evaluate a range of alternatives. AHIP has retained Robert W. Baird & Co. Incorporated (“Baird“) as financial advisor to advise AHIP in connection with its Strategic Review.
AHIP has not established a definitive timeline to complete the Strategic Review or any potential transaction, and no decisions have been reached at this time. There can be no assurance that the engagement of Baird or the Strategic Review will result in any transaction or initiative or, if a transaction or initiative is undertaken, as to the terms or timing of such a transaction or initiative. AHIP does not currently intend to disclose further developments in connection with or arising from the Strategic Review or in connection with any transaction, initiative or related matter, unless and until it is determined that disclosure is necessary or appropriate.
ADDRESSING 2026 BALANCE SHEET OBLIGATIONS
AHIP has made significant progress on its plan to reduce debt and improve the quality of its portfolio through asset sales and loan refinancings. AHIP disposed of eighteen hotel properties in 2025 for total gross proceeds of $160.9 million and three hotel properties to date in 2026 for total gross proceeds of $67.3 million, which has improved the overall portfolio asset quality, while also significantly reducing leverage. AHIP also completed two loan refinancings in 2025 for total gross proceeds of $144.3 million. The net proceeds from these sales along with a portion of the proceeds from the loan refinancings, were used to repay the CMBS loans secured by those properties, a portion of the Portfolio Loan and to redeem $25.0 million of the outstanding Series C Shares. These transactions significantly improved the overall duration of AHIP’s outstanding loans.
AHIP has no secured debt maturing until the fourth quarter of 2026, with a $22.3 million CMBS loan maturing in November 2026. AHIP is currently marketing each hotel in this portfolio for sale. Effective January 28, 2026, the dividend rate on the $50.0 million outstanding Series C Preferred Shares of U.S. Subsidiary Inc. (“Series C Shares“) increased from 9.0% to 14.0% per annum and certain other provisions under the Investor Rights Agreement apply which may reduce AHIP’s flexibility until such time as the Series C Shares have been fully redeemed. On March 13, 2026, AHIP redeemed $25.0 million of the $50.0 million stated face value of the Series C Shares, which results in a remaining $25.0 million stated face value. These restrictions are summarized below under the heading “Restrictions Under the Investor Rights Agreement”. AHIP’s 6.0% unsecured subordinated convertible debentures (the “Debentures“) mature on December 31, 2026.
Regarding potential dispositions, AHIP currently has six hotels under contract for sale with additional hotels under consideration for sale. As noted above the Board is currently conducting the Strategic Review through which the Board considers a range of alternatives, which may include additional asset sales. The number of potential hotel dispositions will be dependent on the outcome of the Strategic Review as well as regional market factors, hotel performance, hotel size, nature and value of any offers and whether any portion of the remaining Series C Shares and/or Debentures are recapitalized. The continuation of AHIP as a going concern is subject to the successful implementation of the above strategies.
HOTEL DISPOSITIONS
2026 Hotel Dispositions
During the three months ended March 31, 2026, AHIP completed the disposition of one hotel property for total gross proceeds of $8.3 million. After adjusting for an industry standard 4% FF&E reserve, the sales price for the one hotel property sold in Q1 2026, represents a Cap Rate of 9.0% on 2025 annual hotel EBITDA(1). The net proceeds from this disposition were used to repay a portion of the Portfolio Loan and added to AHIP’s cash balances.
AHIP’s enterprise value as at March 31, 2026 reflects an implied Cap Rate of 8.7% on 2025 annual hotel EBITDA for the portfolio of 30 hotel properties, based on the Canadian dollar closing price of $0.46 per unit on the TSX on March 31, 2026, and converted to US dollars at a foreign exchange rate of CDN$1.39 to US$1.
At March 31, 2026 and the date of the MD&A, AHIP has six hotel properties under purchase and sale agreements and classified as held for sale: Holiday Inn Express & Suites Fort Myers in Fort Myers, FL Embassy Suites Tempe in Tempe, Springhill Suites Arundel Mills BWI Airport in Hanover, MD; Hilton Garden Inn Baltimore White Marsh in Baltimore, MD; Homewood Suites Dover Rockaway in Dover, NJ; and Homewood Suites Allentown West Fogelsville Allentown in PA. These sales are expected to close in the second and third quarter of 2026. Upon closing, these sales would represent total gross proceeds of $78.4 million at a blended Cap Rate of 5.9% on 2025 annual hotel EBITDA.
On April 1, 2026, AHIP completed the sale of Embassy Suites Cleveland Rockside in OH and Embassy Suites Colombus Dublin in OH. These two hotels, which were classified as held for sale at March 31, 2026, plus an additional hotel now unencumbered were previously part of a $58.3 million CMBS Loan which was fully repaid at closing. The total gross proceeds were $59.0 million at a blended Cap rate of 9.0% on 2025 annual EBTIDA. AHIP used the net proceeds from the sale of these hotels to repay the CMBS Loan secured by three hotel properties.
2026 FIRST QUARTER REVIEW
FINANCIAL AND OPERATIONAL HIGHLIGHTS
For the three months ended March 31, 2026, ADR increased 5.0% to $142, and occupancy increased by 70 bps to 68.6%, compared to the three months ended March 31, 2025. Overall, improved ADR and occupancy resulted in an increase of 5.4% in RevPAR to $97, compared to the three months ended March 31, 2025. The improved performance is attributable to the disposition of hotel properties with lower-than-average portfolio RevPAR and an increase in same property ADR of 2.2%.
NOI was $8.2 million for the three months ended March 31, 2026, decreases of 35.0% compared to NOI of $12.7 for the three months ended March 31, 2025. The decrease in NOI was primarily due to the disposition of the eighteen hotel properties completed in 2025.
NOI margin was 22.7% for the three months ended March 31, 2026, a decrease of 340 bps compared to 26.1% for the same period of 2025. The decrease in NOI margin was due to higher operating expenses as a result of increases in room labour expenses, utilities, and maintenance expenses partially offset by the disposal of underperforming hotels.
Diluted FFO per unit for the three months ended March 31, 2026, was ($0.03) compared to diluted FFO per unit of ($0.02) for the three months ended March 31, 2025. The decrease in diluted FFO per unit was mainly due to lower NOI as a result of sold properties, higher operating expenses on same properties, partially offset by a reduction in the weighted average number of Units outstanding and lower corporate and administrative expenses in the current year.
SAME PROPERTY KPIs
The following table summarizes key performance indicators (“KPIs“) for the portfolio for the five most recent quarters with a comparison to the same period in the prior year on a same-property basis.
| Same Property KPIs | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | ||||||||||
| ADR | $142 | $137 | $144 | $144 | $139 | ||||||||||
| Change compared to same period in prior year – % increase/(decrease) | 2.2% | 1.5% | 0.4% | (1.5%) | (0.6%) | ||||||||||
| Occupancy | 68.7% | 69.0% | 74.5% | 75.4% | 69.0% | ||||||||||
| Change compared to same period in prior year – bps increase/(decrease) | (30) | (80) | 64 | (182) | 129 | ||||||||||
| RevPAR | $98 | $95 | $107 | $109 | $96 | ||||||||||
| Change compared to same period in prior year – % increase/(decrease) | 2.1% | 1.1% | 1.3% | (3.8%) | 1.2% | ||||||||||
| NOI | $8,748 | $7,069 | $11,412 | $13,642 | $10,071 | ||||||||||
| Change compared to same period in prior year – % increase/(decrease) | (13.1%) | (21.8%) | (10.4%) | (7.8%) | (5.2%) | ||||||||||
| NOI Margin | 24.1% | 19.8% | 28.5% | 33.9% | 28.4% | ||||||||||
| Change compared to same period in prior year – bps increase/(decrease) | (430) | (560) | |||||||||||||