Q2 2026 American Hotel Income Properties REIT LP Earnings Call Transcript
Key Points
- RevPAR increased 4.1% year-over-year to $116, with five consecutive months of growth driven by improved corporate travel, recovering government demand, and strong retail performance.
- Occupancy rose 206 basis points to 78.5%, and ADR grew 1.3% to $147, indicating robust demand across key segments.
- Asset disposition strategy is delivering value, with 2025-2026 sales totaling $295 million at a blended cap rate of 7.6%, and four additional properties under contract for $32 million at a 4.6% cap rate.
- Debt-to-EBITDA improved to 8.9 times, down 0.5 times from December 2025, reflecting better leverage management.
- Completed a new $24.9 million interest-only nonrecourse financing, which repaid a CMBS loan and increased cash balances, supporting balance sheet flexibility.
- Diluted FFO turned negative at -$0.01 per unit in Q2 2026, down from $0.06 in Q2 2025, indicating weaker earnings performance.
- NOI margin decreased 146 basis points to 35% due to cost escalations in repairs, maintenance, and utilities, leading to negative flow-through.
- Debt-to-gross book value increased to 51%, up 240 basis points from December 2025, signaling higher leverage.
- Cash balance dropped to $21.5 million from $36.4 million at year-end 2025, primarily due to the $25 million Series C share redemption.
- The strategic review process remains ongoing with no definitive timeline, creating uncertainty for unitholders regarding future direction and potential transactions.
Good morning, and welcome to American Hotel Income Properties REIT LP's second quarter results conference call. Before beginning the call, AHIP would like to remind listeners that the following discussion 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 of fact, 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 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 the MD&A. References to prior
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