Q1 2025 American Hotel Income Properties REIT LP Earnings Call Transcript
Key Points
- Total revenue grew by 1.2% for the quarter, with RevPAR improving by 2.4% over Q1 2024.
- The extended stay segment was the strongest performing vertical, with a 7% increase in RevPAR over Q1 2024.
- AHIP completed the dispositions of three hotel properties for total gross proceeds of $41.2 million, contributing to leverage reduction.
- Two refinancings were completed for initial total gross proceeds of $144.3 million, resulting in the full repayment of the senior credit facility.
- AHIP's board and management team are focused on strengthening the financial position and preserving long-term value for unitholders.
- NOI margin decreased by 107 basis points to 27.5% due to higher operating expenses and inconsistent asset-level performance.
- Normalized diluted funds from operations (FFO) was negative $0.02 per unit for the quarter, compared to $0.02 per unit in Q1 2024.
- Undistributed expenses, particularly labor, remain elevated, impacting the bottom line.
- There was a pullback in group travel during Q1, with government group travel being impacted by US government reductions.
- AHIP is in a dispute with Hotel Manager Lodging Holdings LLC related to mismanagement of the hotel portfolio, which could affect operations.
Good morning, and welcome to American Hotel Income Properties REIT LP's first-quarter results conference call. (Operator instructions)
Before beginning the call, AHIP would like to remind listeners that the following discussions will include forward-looking information within the meaning of applicable Canadian securities laws, which forward-looking information is qualified by this statement. Comments that are not a statement effect, including projections of future earnings, revenue, income and FFO are considered forward-looking.
Participants on this call should not place undue reliance on such information, which is provided based on management's expectations and assumptions as of the date of this call. AHIP does not undertake any obligation to publicly update such information to reflect subsequent events or circumstances, except as required by law.
On this call, AHIP will discuss certain non-IFRS financial measures. For the definition of these non-IFRS financial measures, the most directly comparable IFRS financial measure and a reconciliation between the two, please refer to
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