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American Hotel (TSE:HOT.UN)
:HOT.UN
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AMERICAN HOTEL
(OTC:HOT.UN)
Rating:48Neutral
Price Target:
C$0.50
▲(19.05% Upside)
AMERICAN HOTEL (HOT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$33.41M
Dividend Yield4.24%
Average Volume (3M)35.73K
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth-20.42%
EPS Growth28.25%
CountryCA
Employees11
SectorReal Estate
Sector Strength55
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.15
Shares Outstanding77,692,470
10 Day Avg. Volume30,432
30 Day Avg. Volume35,735
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.50Price Target Upside18.08% Upside
Rating ConsensusHold
Number of Analyst Covering1
AMERICAN HOTEL Business Overview & Revenue Model
Company DescriptionAmerican Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's 78 premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through license agreements. The Company's long-term objectives are to build on its proven track record of successful investment, deliver monthly U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio.
How the Company Makes MoneyAMERICAN HOTEL generates revenue primarily through the leasing of its hotel properties to well-known operators and brands, which in turn manage day-to-day hotel operations. The company typically enters into long-term agreements with these operators, ensuring a steady stream of rental income. Additionally, revenue is supplemented by profit-sharing arrangements, where AMERICAN HOTEL receives a percentage of the hotel's operating income. The REIT may also benefit from ancillary income sources, such as management fees and service charges. Key partnerships with leading hotel brands and franchises are significant contributors to the company's earnings, as they bring brand recognition and customer loyalty, driving higher occupancy rates and room rates.
AMERICAN HOTEL Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -3.45%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture, with notable progress in asset sales, debt refinancing, and cash position, but challenges in declining revenues, RevPAR, and NOI margins. Despite the headwinds, the company expresses confidence in long-term prospects.Q2-2025 Updates
Positive Updates
Record Highs in Average Daily Rate and RevPAR
AHIP achieved all-time highs in average daily rate and RevPAR, with RevPAR index increasing 70 basis points to almost 115% during the quarter.
Successful Asset Sales and Debt Refinancing
AHIP sold 16 hotel properties in 2024 for total gross proceeds of $165.2 million and 11 hotel properties in the first half of 2025 for $73.5 million. This has significantly reduced leverage and improved portfolio asset quality.
Strong Cash Position and No Secured Debt Maturing Until Late 2026
AHIP is in a stable cash position with no secured debt maturing until late 2026, allowing time to consider alternatives for addressing future obligations.
Positive Long-term Prospects
AHIP's diversified portfolio is well positioned to generate long-term value for unitholders, with great progress on the strategic plan to strengthen the balance sheet.
Negative Updates
Decline in Same-Store Revenue and RevPAR
On a same-store basis, total revenue was down by 1.7% and RevPAR decreased by 2.3% compared to Q2 2024, driven by contractions in government and group segments.
Decrease in NOI Margin
NOI margin decreased by 157 basis points to 33.8% for the quarter, affected by inconsistent operating performance, operational disruptions, and elevated undistributed expenses.
First Quarterly Year-over-Year RevPAR Decline in 5 Quarters
AHIP's portfolio saw a RevPAR decline of 2.3%, marking the first quarterly year-over-year RevPAR decline in 5 quarters.
Drop in Funds from Operations
Normalized diluted FFO was $0.06 per unit compared to $0.10 per unit in Q2 2024.
Company Guidance
During the second quarter of 2025, American Hotel Income Properties REIT LP (AHIP) achieved all-time highs in average daily rate and RevPAR, with a RevPAR index increase to nearly 115%. However, same-store total revenue decreased by 1.7%, and RevPAR dropped by 2.3% to $108 compared to Q2 2024. The NOI margin fell by 157 basis points to 33.8%, primarily due to operational challenges and government and group segment contractions. AHIP's strategic initiatives included selling 16 hotel properties in 2024 for $165.2 million and an additional 11 properties in the first half of 2025 for $73.5 million, resulting in a reduction in leverage and no secured debt maturing until late 2026. The company has marketed approximately 20 more hotels and plans to assess offers based on net proceeds and certainty of closing. AHIP also purchased close to 2 million units under a normal course issuer bid at an average price of $0.62 per share. The company transitioned its U.S. REIT to a taxable C corporation for greater flexibility in asset management and switched its external auditor from KPMG to MNP.AMERICAN HOTEL Financial Statement Overview
Summary
AMERICAN HOTEL faces challenges with declining revenue and a high debt burden impacting its financial flexibility. The company shows some operational stability with a positive EBIT margin but struggles with persistent net losses. Cash flow from operations remains positive, providing some liquidity support, yet the overall financial position is strained by high leverage and negative shareholder returns.Income Statement
The company showed declining revenue with a growth rate of -8.43% between 2023 and 2024. The gross profit margin decreased to 28.57% in 2024 from 29.72% in 2023, indicating pressure on profitability. The net profit margin remains negative, at -18.29% in 2024, showing significant net losses, although improved from -27.79% in 2023. The EBIT margin improved to 17.08% in 2024 from 17.26% in 2023, showing some stability in operational earnings.52
Neutral
Balance Sheet
The debt-to-equity ratio is high at 3.11 in 2024, indicating significant leverage and potential financial risk. Stockholders' equity declined, reducing the equity ratio to 20.28% in 2024 from 19.83% in 2023, reflecting limited equity support and increased financial vulnerability. Return on equity remains negative due to continued net losses, highlighting ongoing challenges in generating shareholder returns.45
Neutral
Cash Flow
Free cash flow improved slightly to $631K in 2024 from $5.56M in 2023. The operating cash flow to net income ratio is positive, indicating that operations are generating cash even amidst net losses. However, the free cash flow to net income ratio is low, reflecting limited free cash flow relative to the net loss.58
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 256.88M | 280.52M | 281.37M | 241.31M | 174.85M |
| Gross Profit | 73.42M | 83.37M | 40.33M | 45.83M | 3.33M |
| EBITDA | 32.48M | -7.13M | 37.12M | 81.91M | 8.07M |
| Net Income | -46.98M | -81.49M | -39.64M | -15.61M | -66.43M |
Balance Sheet | |||||
| Total Assets | 685.11M | 954.89M | 1.05B | 1.15B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 27.84M | 17.80M | 12.95M | 14.70M | 20.15M |
| Total Debt | 431.63M | 645.66M | 688.44M | 738.85M | 782.31M |
| Total Liabilities | 501.09M | 721.94M | 730.69M | 775.89M | 852.19M |
| Stockholders Equity | 138.92M | 189.38M | 278.54M | 331.03M | 341.71M |
Cash Flow | |||||
| Free Cash Flow | 631.00K | 5.56M | 16.66M | 11.74M | -5.39M |
| Operating Cash Flow | 10.70M | 29.70M | 44.91M | 17.95M | 3.55M |
| Investing Cash Flow | 155.19M | 2.69M | 15.30M | -18.63M | -1.96M |
| Financing Cash Flow | -155.85M | -28.63M | -61.96M | -4.34M | 932.00K |
AMERICAN HOTEL Technical Analysis
Negative
0.42
Price Trends
0.45
Negative
0.49
Negative
0.55
Negative
Market Momentum
>-0.01
Positive
36.11
Neutral
29.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HOT.UN, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.45, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HOT.UN.
AMERICAN HOTEL Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | C$1.98B | 4.69 | -0.88% | 5.25% | 2.53% | -62.52% | |
53 Neutral | C$33.48M | ― | -162.05% | ― | -2.68% | -234.34% | |
50 Neutral | C$29.57M | ― | -22.37% | 7.55% | -10.79% | 34.71% | |
48 Neutral | C$33.41M | ― | -53.87% | 4.24% | -20.42% | 28.25% | |
37 Underperform | C$28.54M | ― | -9.01% | 1.95% | -28.04% | 18.47% |
* Real Estate Sector Average
Performance Comparison
TSE:HOT.UN
AMERICAN HOTEL
0.43
0.01
2.38%
TSE:RPR.UN
Slate Office REIT
0.42
0.04
10.53%
TSE:MPCT.UN
Dream Impact Trust
1.47
-1.80
-55.05%
TSE:INO.UN
Inovalis REIT
0.88
-0.37
-29.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.