AMERICAN HOTEL (HOT.UN) AI Stock Analysis

• Market Cap: C$26.21M
• Dividend Yield: N/A
• Average Volume (3M): 65.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -24.95%
• EPS Growth: -1.42%
• Country: CA
• Employees: 11
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.45
• Shares Outstanding: 74,884,600
• 10 Day Avg. Volume: 85,568
• 30 Day Avg. Volume: 65,056
• PEG Ratio: 0.02
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 61.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.11
• Revenue Forecast (FY): C$262.42M

• Rating: 41 Neutral
• Price Target: C$0.34 ▲(14.67% Upside)

The overall stock score is primarily impacted by weak financial performance and poor valuation. While there are some positive aspects from the earnings call, such as strategic asset dispositions, the overall outlook remains challenging due to declining revenues, high leverage, and negative profitability.

Positive Factors

Strategic Asset Dispositions

The strategic sale of properties has improved portfolio asset quality and reduced leverage, enhancing financial stability and flexibility.

Record Average Daily Rate and RevPAR

Achieving record rates and RevPAR indicates strong pricing power and effective revenue management, supporting long-term revenue growth.

Stabilized Labor Costs

Reduced reliance on third-party labor stabilizes costs and enhances operational efficiency, contributing to sustainable margin improvements.

Negative Factors

High Leverage

Substantial leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Decline in Same-Store Revenue and RevPAR

Declining same-store revenue and RevPAR suggest challenges in maintaining competitive positioning and market demand, affecting future growth.

Negative Cash Flow

Negative cash flow growth highlights cash generation issues, potentially restricting reinvestment and operational flexibility in the long term.

AMERICAN HOTEL Business Overview & Revenue Model

Company Description

AMERICAN HOTEL (HOT.UN) operates primarily in the hospitality sector, specializing in the ownership, acquisition, and management of a diverse portfolio of hotel properties across North America. The company focuses on providing high-quality accommodations and services to both leisure and business travelers. It emphasizes strategic partnerships with reputable hotel brands, enabling it to leverage brand recognition and operational expertise to enhance guest experiences and optimize property performance.

How the Company Makes Money

AMERICAN HOTEL generates revenue primarily through the ownership and leasing of hotel properties, earning income from room rentals and ancillary services such as food and beverage sales, event hosting, and other amenities. The company benefits from a dual revenue model: direct income from its owned and leased assets and management fees from properties it oversees on behalf of third-party owners. Key revenue streams include daily room rates, occupancy rates, and seasonal demand fluctuations. Strategic partnerships with established hotel brands help attract a steady flow of guests, while efficient property management practices contribute to maximizing profitability. Additionally, the company may engage in renovations and value-add projects to enhance property appeal and drive higher occupancy and rate growth, further contributing to its earnings.

AMERICAN HOTEL Financial Statement Overview

Summary

The financial performance is weak, with declining revenue, high leverage, and negative profitability margins. The company faces significant financial challenges, including liquidity constraints and operational inefficiencies.

Income Statement

The income statement shows declining revenue with a negative growth rate of -9.4% TTM, indicating potential challenges in maintaining sales. The gross profit margin is moderate at 29.2%, but the net profit margin is negative at -25.6%, reflecting significant losses. EBIT and EBITDA margins are also weak, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.11, indicating substantial leverage and potential financial risk. The return on equity is negative, showing that the company is not generating profit from its equity base. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Cash flow analysis indicates negative free cash flow growth and a low operating cash flow to net income ratio of 0.046, highlighting cash generation issues. The free cash flow to net income ratio is minimal, further emphasizing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.54M	256.88M	280.52M	281.37M	241.31M	174.85M
Gross Profit	61.66M	73.42M	83.37M	40.33M	45.83M	3.33M
EBITDA	9.50M	32.48M	-7.13M	37.12M	81.91M	8.07M
Net Income	-67.16M	-46.98M	-81.49M	-39.64M	-15.61M	-66.43M
Balance Sheet
Total Assets	575.04M	685.11M	954.89M	1.05B	1.15B	1.19B
Cash, Cash Equivalents and Short-Term Investments	18.65M	27.84M	17.80M	12.95M	14.70M	20.15M
Total Debt	389.85M	431.63M	645.66M	688.44M	738.85M	782.31M
Total Liabilities	425.72M	501.09M	721.94M	730.69M	775.89M	852.19M
Stockholders Equity	105.75M	138.92M	189.38M	278.54M	331.03M	341.71M
Cash Flow
Free Cash Flow	-2.50M	631.00K	5.56M	16.66M	11.74M	-5.39M
Operating Cash Flow	3.01M	10.70M	29.70M	44.91M	17.95M	3.55M
Investing Cash Flow	212.60M	155.19M	2.69M	15.30M	-18.63M	-1.96M
Financing Cash Flow	-212.88M	-155.85M	-28.63M	-61.96M	-4.34M	932.00K

AMERICAN HOTEL Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HOT.UN, the sentiment is Neutral. The current price of 0.3 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.36, and below the 200-day MA of 0.47, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 54.70 is Neutral, neither overbought nor oversold. The STOCH value of 71.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:HOT.UN.

AMERICAN HOTEL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RPR.UN	53 Neutral	C$32.62M	―	-141.77%	―	-6.21%	65.52%
MPCT.UN	45 Neutral	C$28.36M	-0.73	-9.99%	―	-25.69%	0.12%
INO.UN	45 Neutral	C$25.92M	―	-17.55%	―	-7.30%	55.77%
HOT.UN	41 Neutral	C$26.21M	―	―	―	-24.95%	-1.42%

AMERICAN HOTEL Corporate Events

American Hotel Reports Q3 2025 Earnings and Strategic Updates

American Hotel Income Properties REIT LP (AHIP) is a limited partnership that invests in hotel real estate properties across the United States, focusing on premium branded, select-service hotels in secondary metropolitan markets. In its third-quarter 2025 earnings report, AHIP highlighted a 1.9% increase in same-property RevPAR and a strategic focus on asset sales to enhance liquidity and reduce debt. Key financial metrics showed a 0.7% increase in same-property ADR and a 70 bps rise in occupancy, although same-property NOI decreased by 8.1%. The company completed the sale of one hotel property for $17.4 million and has seven more under contract, with plans to continue selling properties to manage future financial obligations. Looking ahead, AHIP remains focused on reducing debt and optimizing its portfolio through strategic asset sales, with no debt maturities until late 2026, providing a stable cash position to explore alternatives for addressing future obligations.