American Hotelome Properties REIT LP (OTCPK:AHOTF) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
American Hotelome Properties REIT LP Operating Margin % Related Terms
American Hotelome Properties REIT LP Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Hotelome Properties REIT LP Operating Margin % Chart
AHOTF vs HST, RHP, APLE: Operating Margin % Comparison
For the REIT - Hotel & Motel subindustry, American Hotelome Properties REIT LP's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Hotelome Properties REIT LP Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, American Hotelome Properties REIT LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where American Hotelome Properties REIT LP's Operating Margin % falls into.
American Hotelome Properties REIT LP Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Hotelome Properties REIT LP (AHOTF) has a Operating Margin % of 4.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on American Hotelome Properties REIT LP and its competitors. This is 64% below median its historical median of 11.75. According to the industry distribution chart, American Hotelome Properties REIT LP ranks #674 out of 749 companies in the REITs industry, placing it in the top 90%.
Is American Hotelome Properties REIT LP's Operating Margin % too high?
American Hotelome Properties REIT LP's current Operating Margin % of 4.18% is 64% below median its 10-year median of 11.75. The REITs industry median Operating Margin % is 52.63. American Hotelome Properties REIT LP's value of 4.18% is 92.1% below this industry median. Based on the distribution chart, American Hotelome Properties REIT LP ranks #674 out of 749 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, American Hotelome Properties REIT LP has a GF Score™ of 33/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Hotelome Properties REIT LP's Operating Margin % compare to HST and RHP?
According to the REITs industry distribution chart, American Hotelome Properties REIT LP ranks #674 out of 749 companies for Operating Margin %. This places American Hotelome Properties REIT LP in the lower half of its industry. The industry median Operating Margin % is 52.63. American Hotelome Properties REIT LP's value of 4.18% is 92.1% below this benchmark. While the company's 10-year median is 11.75 vs. the industry median of 52.63, American Hotelome Properties REIT LP has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.63, based on 749 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Hotelome Properties REIT LP's current Operating Margin % of 4.18% is 92.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on American Hotelome Properties REIT LP and its competitors. For the REITs industry, the median Operating Margin % is 52.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Hotelome Properties REIT LP's current Operating Margin % is 4.18%, which is 64% below median its own 10-year median of 11.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Hotelome Properties REIT LP stock overvalued right now?
Based on GuruFocus' analysis, American Hotelome Properties REIT LP (AHOTF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.30, compared to a current price of $0.37 — trading 23.8% above its estimated fair value. The current Operating Margin % is 4.18%, which is 64% below median its 10-year median of 11.75 and 92.1% below the REITs industry median of 52.63. American Hotelome Properties REIT LP's overall GF Score™ is 33/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For American Hotelome Properties REIT LP (AHOTF), the current Operating Margin % is 4.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Hotelome Properties REIT LP (AHOTF) Overvalued in 2026?
Based on GuruFocus' analysis, American Hotelome Properties REIT LP stock appears to be overvalued.
The current stock price of $0.37 is trading 23.8% above its estimated GF Value™ of $0.30.
GuruFocus considers American Hotelome Properties REIT LP to be Modestly Overvalued.
Key valuation signals for AHOTF:
Operating Margin %: 4.18% (64% below median its 10-year median of 11.75)
GF Value™: $0.30 vs. price of $0.37 (23.8% above fair value)
Industry Position: 92.1% below the REITs median (#674 of 749)
No single metric tells the full story. See the AHOTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Hotelome Properties REIT LP Business Description
American Hotel Income Properties REIT LP is a trust that invests in hotel real estate properties in the United States. The company's primary business is owning Premium-Branded hotels, which have franchise agreements with international hotel brands, including Marriott, Hilton, and IHG. It generates revenue from rooms, food, beverages, and other sources. Other revenue is comprised of conference room rentals, parking revenues, and other incidental income.
33GF Score
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