American Hotel Income Properties REIT LP

Same-store Q2 revenue was $26.7 million, up 4.5% versus 2025. Diluted FFO was negative $0.01 per unit, compared with diluted FFO of $0.06 in Q2 2025. RevPAR was $116, up 4.1% year over year; occupancy was 78.5%, up 206 basis points; ADR was $147, up 1.3%; and NOI margin was 35%, down 146 basis points. For the quarter, total revenue increased by $1.1 million across the portfolio of 23 assets. On the balance sheet, unrestricted cash was $21.5 million at June 30, 2026, restricted cash was $14.5 million, debt to gross book value was 51%, and debt-to-EBITDA was 8.9x. Management said 2026 capital expenditures are estimated at $3.2 million for PIPs and $5 million for FF&E, with actual spend of $2.3 million and $1.7 million for the first six months. Looking ahead, AHIP has 4 additional hotel properties under purchase and sale agreements for estimated gross proceeds of approximately $32 million, expected to close in Q3, and it said it plans to be in a position to redeem the remainder of the Series C shares and the convertible debentures in 2026.

John Christopher O'Neill emphasized that the board’s strategic review is ongoing and focused on maximizing unitholder value, reducing debt, and improving the balance sheet. He highlighted progress through asset sales, loan refinancings, and NCIB buybacks, and argued the units trade below underlying asset value. His tone was constructive but cautious, with no definitive timeline given for the strategic review or any transaction.

Travis Beatty focused on liquidity, leverage, and the financing steps used to simplify the balance sheet. He noted unrestricted cash of $21.5 million, restricted cash of $14.5 million, and $17.4 million available under portfolio loans for capital improvements, while also citing debt to gross book value of 51% and debt-to-EBITDA of 8.9x. He explained that the cash decline from year-end was mainly due to the $25 million redemption of Series C shares, and detailed the May 20 nonrecourse loan: initial gross proceeds of $24.9 million, up to $4.3 million of additional advances, a 2-year term with a 1-year extension option, and interest at SOFR plus 4.25%.

There was no analyst Q&A in the transcript, so the main discussion centered on management’s prepared remarks. The biggest investor-facing issue was the strategic review and how quickly asset sales/refinancings can be completed to address upcoming obligations. Management also acknowledged operating pressure from cost inflation, especially repairs and maintenance and utilities, which hurt margins despite revenue growth.