AMERICAN HOTEL (HOT.UN) AI Stock Analysis

• Market Cap: $34.55M
• Dividend Yield: N/A
• Average Volume (3M): 65.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -24.95%
• EPS Growth: -1.42%
• Country: CA
• Employees: 11
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.44
• Shares Outstanding: 71,983,600
• 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: 10.65
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 6.68
• Enterprise Value/Ebitda: -15.44
• 1Y Price Target: $0.36
• Price Target Upside: -25.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: C$0.33 ▼(-32.29% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical analysis provides a neutral outlook, while valuation metrics highlight significant concerns due to negative profitability and lack of dividends. The absence of earnings call insights and corporate events leaves the financial and valuation challenges as the dominant factors.

Positive Factors

Strategic Partnerships

Partnerships with well-known hotel brands enhance brand recognition and operational expertise, potentially driving long-term guest loyalty and revenue.

Dual Revenue Model

The dual revenue model provides diversified income streams, reducing reliance on any single source and potentially stabilizing revenue over time.

Property Management Efficiency

Effective management practices can enhance property performance, leading to higher occupancy rates and profitability, supporting long-term business sustainability.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.

Declining Revenue

A declining revenue trend suggests challenges in maintaining market share and demand, which could hinder long-term growth and profitability.

Negative Cash Flow

Negative cash flow indicates liquidity issues, limiting the company's ability to fund operations and invest in future growth, posing a risk to financial stability.

AMERICAN HOTEL Business Overview & Revenue Model

Company Description

American 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 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

AMERICAN HOTEL faces significant financial challenges across all statements. The income statement reflects declining revenues and persistent losses, while the balance sheet shows high leverage and negative equity returns. Cash flow issues further exacerbate the situation, with negative operating and free cash flows. The company needs to address its operational inefficiencies and financial structure to improve its financial health.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -8.38% in the TTM. The company has consistently reported negative net income, leading to a negative net profit margin of -31.01% in the TTM. Gross profit margin remains relatively stable but low at 28.47%. The EBIT margin is negative, indicating operational challenges. Overall, the income statement reflects financial struggles with declining revenues and profitability issues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.69 in the TTM, indicating significant leverage. The return on equity is negative, reflecting ongoing losses and poor returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing. While the company maintains a substantial asset base, the high leverage poses financial risks.

Cash Flow

Cash flow analysis shows a negative operating cash flow in the TTM, with a low operating cash flow to net income ratio of 0.09. Free cash flow is also negative, though it has improved by 63.85% compared to the previous period. The free cash flow to net income ratio is negative, indicating cash flow challenges. Overall, the cash flow statement highlights liquidity issues and insufficient cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	198.39M	256.88M	280.52M	281.37M	241.31M	174.85M
Gross Profit	55.06M	73.42M	83.37M	40.33M	45.83M	3.33M
EBITDA	-23.82M	32.48M	-7.13M	37.12M	81.91M	8.07M
Net Income	-93.25M	-46.98M	-81.49M	-39.64M	-15.61M	-66.43M
Balance Sheet
Total Assets	537.05M	685.11M	954.89M	1.05B	1.15B	1.19B
Cash, Cash Equivalents and Short-Term Investments	25.61M	27.84M	17.80M	12.95M	14.70M	20.15M
Total Debt	369.93M	431.63M	645.66M	688.44M	738.85M	782.31M
Total Liabilities	415.20M	501.09M	721.94M	730.69M	775.89M	852.19M
Stockholders Equity	78.29M	138.92M	189.38M	278.54M	331.03M	341.71M
Cash Flow
Free Cash Flow	-4.10M	631.00K	5.56M	16.66M	11.74M	-5.39M
Operating Cash Flow	-3.12M	10.70M	29.70M	44.91M	17.95M	3.55M
Investing Cash Flow	180.31M	155.19M	2.69M	15.30M	-18.63M	-1.96M
Financing Cash Flow	-177.40M	-155.85M	-28.63M	-61.96M	-4.34M	932.00K

AMERICAN HOTEL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HOT.UN, the sentiment is Positive. The current price of 0.48 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 80.30 is Negative, neither overbought nor oversold. The STOCH value of 82.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$18.46M	-0.13	-141.77%	―	-6.21%	65.52%
INO.UN	51 Neutral	C$35.34M	-0.98	-17.55%	―	-7.30%	55.77%
HOT.UN	44 Neutral	$34.55M	-0.29	―	―	-24.95%	-1.42%
MPCT.UN	42 Neutral	C$26.60M	-0.67	-9.99%	―	-25.69%	0.12%

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.