Education
About Us
Working with TipRanks
Follow Us
AMERICAN HOTEL (TSE:HOT.UN)
TSX:HOT.UN
Top Page
AMERICAN HOTEL
(TSX:HOT.UN)
Select Model
Select Model
Rating:41Neutral
Price Target:
C$0.50
▲(19.05% Upside)
The overall stock score for American Hotel Income Properties REIT LP is low due to significant financial challenges, including declining revenues and high leverage. Technical analysis indicates bearish momentum, and valuation metrics are unattractive with a negative P/E ratio. The earnings call provided some positive highlights, but the overall sentiment remains mixed.
AMERICAN HOTEL (HOT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$31.67M
Dividend Yield4.24%
Average Volume (3M)50.42K
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth-20.42%
EPS Growth28.25%
CountryCA
Employees11
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.15
Shares Outstanding75,397,934
10 Day Avg. Volume34,955
30 Day Avg. Volume50,419
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.28
Price to Sales (P/S)0.15
P/FCF Ratio61.42
Enterprise Value/Market Cap45.16
Enterprise Value/Revenue6.60
Enterprise Value/Gross Profit23.19
Enterprise Value/Ebitda150.53
Forecast
1Y Price Target
$0.52Price Target Upside24.82% Upside
Rating ConsensusHold
Number of Analyst Covering2
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: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. On the positive side, AHIP achieved record average daily rates and successfully managed debt through strategic asset dispositions. However, there were notable declines in same-store revenue, RevPAR, and NOI margins, coupled with decreased demand in government and group segments.Q2-2025 Updates
Positive Updates
Record Average Daily Rate and RevPAR
AHIP achieved all-time highs in average daily rate and RevPAR. The RevPAR index increased by 70 basis points to almost 115% during the quarter, highlighting the success of strategic asset dispositions.
Successful Asset Dispositions and Debt Management
AHIP sold 16 hotel properties in 2024 for $165.2 million and completed the disposition of 11 hotel properties in the first half of 2025 for $73.5 million. These sales improved portfolio asset quality and reduced leverage. AHIP has no secured debt maturing until late 2026.
Improvement in Extended Stay Segment
The Extended Stay segment was the strongest performing vertical, with a RevPAR increase of 1% over Q2 2024, finishing at $115.
Stabilized Labor Costs
Reliance on third-party labor has declined by 75% since the end of 2023, helping stabilize rooms department costs and improving housekeeping efficiency.
Negative Updates
Decline in Same-Store Revenue and RevPAR
Total revenue decreased by 1.7% and RevPAR finished at $108, a 2.3% decrease compared to Q2 2024, driven by contractions in the government and group segments.
Decreased NOI Margin
NOI margin decreased by 157 basis points to 33.8% for the quarter compared to the same period in 2024, due to inconsistent asset-level performance and elevated undistributed expenses.
Reduced Government and Group Demand
Government revenue dropped to about 90% of Q2 2024 levels, and group travel revenue dropped to 83% of Q2 2024 across the portfolio.
Lower Average Daily Rate
Average daily rate finished at $142 for the quarter, which was 1.5% below Q2 2024 levels.
Decline in Normalized Diluted FFO
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 record highs in average daily rate and RevPAR, with a RevPAR index increase of 70 basis points to nearly 115%. Despite these achievements, same-store total revenue for AHIP's 38 hotels decreased by 1.7%, and RevPAR fell by 2.3% to $108 compared to Q2 2024. The decline was attributed to reduced demand from government and group segments and challenging comparisons to exceptional demand in the previous year. The NOI margin decreased by 157 basis points to 33.8%. To strengthen its financial position, AHIP sold 16 hotel properties in 2024 for $165.2 million and 11 properties in the first half of 2025 for $73.5 million, with eight sales in Q2 at a 6.9% cap rate. As of mid-2025, AHIP has no secured debt maturing until late 2026, and further dispositions are planned. The company has purchased nearly 2 million units under a normal course issuer bid, reflecting its view that units are trading below asset value.AMERICAN HOTEL Financial Statement Overview
Summary
The financial performance of American Hotel Income Properties REIT LP is weak, with declining revenues, high leverage, and negative profitability margins. The cash flow situation is concerning, with negative growth and low ratios, indicating liquidity constraints.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.45
Neutral
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.40
Negative
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.30
Negative
| 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
Negative
0.42
Price Trends
0.43
Negative
0.46
Negative
0.52
Negative
Market Momentum
>-0.01
Negative
46.68
Neutral
44.44
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 0.43, below the 50-day MA of 0.43, and below the 200-day MA of 0.52, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | 37.77M | -0.12 | 0.00% | ― | -5.30% | -16.47% | |
50 Neutral | 26.88M | -0.59 | -37.98% | ― | -10.79% | 34.71% | |
41 Neutral | $31.67M | ― | -53.87% | 4.24% | -20.42% | 28.25% | |
41 Neutral | 34.06M | -0.94 | -9.49% | ― | -28.04% | 18.47% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
TSE:HOT.UN
AMERICAN HOTEL
0.42
-0.26
-38.24%
TSE:MPCT.UN
Dream Impact Trust
1.85
-2.26
-54.99%
TSE:FCA.UN
Firm Capital American Realty Partners Corp
4.29
-0.93
-17.82%
TSE:INO.UN
Inovalis REIT
0.80
-0.32
-28.57%
TSE:RPR.UN
Slate Office REIT
0.44
0.08
22.22%
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.