Canada's American Hotel Income Properties Q4 revenue plunges on asset sales

Overview

• Canada-based hotel REIT's Q4 revenue fell 25.6% yr/yr due to hotel property sales

• Q4 same property NOI margin dropped 560 bps, impacted by higher costs and a one-time charge

• Company redeemed $25 mln of Series C shares in March 2026 to reduce debt

Outlook

• Company expects sales of eight hotels to close by end-Q2 2026 for $137.3 mln

• Company plans to redeem remaining Series C Shares and convertible debentures in 2026

• Company is evaluating additional hotel sales and refinancing to strengthen financial position

Result Drivers

• HOTEL SALES - Revenue and NOI fell due to the sale of six hotels in Q4 and eighteen hotels over the year, as proceeds were used to reduce debt and improve portfolio quality

• HIGHER OPERATING COSTS - Increased electricity, sales and marketing, and maintenance expenses drove down same property NOI and margins

• ONE-TIME CHARGE - Q4 results included a $1.3 mln non-cash expense from a change in estimate for collectability of certain receivables

Company press release: ID:nGNX8lPfnz

Key Details

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