American Hotel Income Properties REIT (HOT-UN) Q1 2026 earnings summary

Executive summary

• Initiated a strategic review to maximize unit holder value, retaining Robert W. Baird & Co. as financial advisor, with potential for further hotel sales.

• Advanced plans to strengthen financial position through asset sales and loan refinancings.

• Disposed of 21 hotel properties since 2025 for $219.9 million, including 18 in 2025 for $161 million, 3 in 2026 for $67 million, and 1 in Q1 2026 for $8.3 million; 6 additional properties under contract for $78 million.

• Revenue for Q1 2026 was $36.4 million, down 25.2% year-over-year due to hotel dispositions.

• Same property ADR rose 2.2% to $142, and same property RevPAR increased 2.1% to $98.

Financial highlights

• Q1 2026 same-store revenue was $36.2 million, up 2.2% year-over-year, but total revenue declined due to asset sales.

• Normalized diluted FFO was negative $0.03, compared to negative $0.02 last year.

• AFFO per unit (diluted) was negative $0.04, compared to negative $0.05 in Q1 2025.

• NOI margin decreased by 426–430 bps to 24.1% due to cost escalations.

• Unrestricted cash at March 31, 2026, was $15.5 million, down from $36.4 million at year-end 2025, mainly due to $25 million Series C share redemption.

Outlook and guidance

• Six hotel properties under purchase and sale agreements expected to close in Q2/Q3 2026 for $78–78.4 million.

• Plan to redeem remaining Series C Shares and convertible debentures in 2026, subject to asset sales and refinancing.

• No debt maturities until Q4 2026; $22.3 million CMBS loan matures in November 2026.

• April preliminary results show occupancy at 77%, ADR at $141, and RevPAR at $108, up 3% year-over-year.

• Strategic review may result in further asset sales and balance sheet improvements.