American Hotel Income Properties REIT LP Reports Q3 2025 Results With Same Property 1.9% RevPAR Growth and Provides Corporate Update
Executive Summary
- AHIP reported Q3 2025 results, showing modest ADR (+0.7%) and occupancy (+70 bps) improvements but a significant decline in same‑property NOI (‑8.1%).
- The partnership completed hotel dispositions generating $90.8 M in gross proceeds during the nine months ended Sept. 30 2025 and has $77.0 M of additional sales under contract, aiming to strengthen liquidity and address 2026 debt maturities.
- AHIP’s board approved converting its U.S. subsidiary from REIT status to a taxable C corporation, removing the 9.8% unit‑ownership limit and providing greater flexibility for future asset sales and recapitalizations.
Key Details
- Financial Highlights (Q3 2025 vs Q3 2024):
- ADR: $141 (+0.7%)
- Occupancy: 75.0% (+70 bps)
- RevPAR: $106 (+1.9%)
- Same‑property NOI: $13.7 M (‑8.1%)
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Diluted FFO per unit: $0.02 vs $0.06 FY 2024 (down 66%).
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Nine‑Month Highlights (ended Sept. 30 2025):
- Revenue: $47.6 M vs $65.7 M FY 2024
- NOI: $12.9 M vs $19.6 M FY 2024
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EBITDA (TTM): $43.3 M; Debt‑to‑EBITDA = 9.1× (up from 8.0×).
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Liquidity & Leverage:
- Unrestricted cash balance: ~$32.5 M (Nov 6 2025).
- No secured debt maturing until Q4 2026; CMBS loans of $22.3 M (Nov 2026) and $30.6 M (Dec 2026) remain.
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Debt‑to‑GBV: 48.7% (down 60 bps YoY).
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Hotel Dispositions:
- Completed Q1–Q3 2025 sales: 12 properties, total gross proceeds $90.8 M (blended cap rate 6.9%).
- Notable completed deals: Homewood Suites Allentown ($11.7 M), Residence Inn Arundel Mills BWI ($18.0 M).
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Under contract (as of Sept. 30 2025): 8 properties, total gross proceeds $90.0 M; expected close Q4 2025.
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Capital Expenditures:
- FY 2025 PIP budget reduced to $2.4 M (down from $6.9 M).
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Actual FY‑to‑date spend: PIPs $1.2 M, FF&E $6.8 M; funded primarily from restricted cash and operating cash flow.
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Corporate Governance Change:
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Board determined the U.S. subsidiary will cease REIT qualification (effective FY 2025), eliminating the 9.8% unit‑ownership cap and allowing greater flexibility for debt repayment, asset sales, or recapitalization of Series C preferred shares and convertible debentures.
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Forward‑Looking Statements:
- Management expects continued hotel disposals, capital improvements funded from cash/restricted cash, and aims to address 2026 debt obligations through proceeds and possible recapitalizations.
Notable Quotes
“AHIP continues to make significant progress on our plan to reduce debt and high‑grade the portfolio through asset sales and loan refinancings,” – Jonathan Korol, CEO