All amounts presented in this news release are in
“We are pleased with the ongoing revenue performance of our select service hotel portfolio in Q2." commented
2023 SECOND QUARTER HIGHLIGHTS
- Diluted FFO per unit (1) and normalized diluted FFO per unit (1) were
$0.19 and$0.14 , respectively, for the second quarter of 2023, compared to$0.18 and$0.15 for the same period of 2022. - RevPAR increased 7.7% to
$98 for the second quarter of 2023, compared to$91 for the same period of 2022. - ADR increased 6.4% to
$133 for the second quarter of 2023, compared to$125 for the same period of 2022. - Occupancy was 73.8% for the second quarter of 2023, an increase of 100 basis points (“bps”) compared to 72.8% for the same period of 2022.
- NOI (1) and normalized NOI (1) were
$25.3 million and$27.2 million , respectively, for the second quarter of 2023, decreases of 5.2% and 0.7%, compared to$26.7 million and$27.4 million for the same period in 2022. - Debt to gross book value (1) was 51.6% as of
June 30, 2023 , decreases of 100 bps and 200 bps, respectively, compared to 52.6% as ofDecember 31, 2022 , and 53.6% as ofJune 30, 2022 . - Weighted average interest rate for all term loans and credit facility, was 4.55% as of
June 30, 2023 , an increase of 9 bps compared to 4.46% as ofDecember 31, 2022 . - Distributions of
$0.015 U.S. dollar per unit paid in each month sinceMarch 2022 .
“This quarter we achieved the highest ADR in the history of the company.”
2023 SECOND QUARTER REVIEW
HIGHEST QUARTERLY ADR IN HISTORY
AHIP’s portfolio of Premium Branded select service hotel properties continued to demonstrate strong demand metrics in the second quarter of 2023. For the three months ended
Improving demand levels resulted in enhanced pricing power and greater opportunity to manage revenue for various hotel segments. Despite the dispositions of six non-core hotel properties since the second quarter of 2022 (five in the fourth quarter of 2022, and one in the second quarter of 2023), and out of order rooms at two hotel properties as a result of weather-related damage in late
AHIP’s five
NOI (1),
NOI and normalized NOI were
Diluted FFO per unit and normalized diluted FFO per unit were
INSURANCE AND WEATHER-RELATED DAMAGE
During the final week of
At the Courtyard Wall in
As a result of the weather-related damage, the total write-down of these hotel properties is
For business interruption insurance, AHIP expects to recover most of the lost income from late
As a result of the claims noted above, higher replacement costs and generally higher premiums, AHIP completed its property insurance renewal effective
LEVERAGE AND LIQUIDITY
KPIs | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 |
Debt to gross book value | 51.6% | 52.0% | 52.6% | 52.6% | 53.6% |
Debt to EBITDA (trailing twelve months) | 9.8x | 9.6x | 9.8x | 10.2x | 10.0x |
Debt to gross book value as of
AHIP has 91.4% of its debt at fixed interest rates or effectively fixed by interest rate swaps until
As of
Commencing in the first quarter of 2024, the borrowing base availability under the revolving credit facility includes a test based on 65% of the capitalized value of the underlying properties. This loan to value test may reduce the borrowing availability under the revolving credit facility and could result in a required repayment of a portion of amounts drawn at such time.
If a repayment is required, AHIP intends to address this potential outcome with some or all of the following: refinancing the credit facility or other term loans to generate proceeds in excess of amounts currently outstanding (including by adding additional properties to the borrowing base under the credit facility); amending the terms of the Fifth Amendment; and/or using cash on hand to satisfy all or a portion of any required repayment.
GROWTH AND STRATEGIC CAPITAL DEPLOYMENT
As a result of the 2021 investment by BentallGreenOak and
In 2022, AHIP completed the strategic dispositions of seven non-core hotel properties for total gross proceeds of
In
The current distribution policy provides for the payment of regular monthly
SAME PROPERTY KPIS
The following table summarizes key performance indicators (“KPIs”) for the portfolio for the five most recent quarters with a comparison to the same period in the prior year. In Q1 and Q2 2023, same property ADR, occupancy and RevPAR calculation excluded the seven hotels sold in 2022, the one hotel sold in 2023, and
KPIs | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 |
ADR | $133 | ||||
% Change compared to same period in prior year | 5.6% | 10.9% | 9.6% | 7.5% | 13.5% |
Occupancy | 73.8% | 65.5% | 67.3% | 73.7% | 74.5% |
Change compared to same period in prior year – bps increase/(decrease) | (70) | (20) | 40 | 290 | 240 |
RevPAR | $98 | ||||
% Change compared to same period in prior year | 4.3% | 10.3% | 10.4% | 11.8% | 17.5% |
NOI Margin | 33.3% | 28.6% | 30.8% | 33.3% | 35.4% |
Change compared to same period in prior year – bps increase/(decrease) | (210) | (90) | (410) | (660) | (680) |
Same property ADR increased by 5.6% to
SELECTED INFORMATION
(thousands of dollars, except per unit amounts) | Three months ended | Three months ended | Six months ended | Six months ended |
Revenue | 75,483 | 75,649 | 140,941 | 137,425 |
Income from operating activities | 17,919 | 17,863 | 27,337 | 24,601 |
Income and comprehensive income | 10,658 | 13,685 | 9,058 | 9,810 |
NOI (1) | 25,287 | 26,655 | 44,025 | 44,155 |
NOI Margin (1) | 33.5% | 35.2% | 31.2% | 32.1% |
22,867 | 24,165 | 39,469 | 39,547 | |
30.3% | 31.9% | 28.0% | 28.8% | |
EBITDA (1) | 20,233 | 22,243 | 34,277 | 35,050 |
EBITDA Margin (1) | 26.8% | 29.4% | 24.3% | 25.5% |
Cashflow from operating activities | 12,403 | 14,694 | 25,497 | 22,359 |
Distributions declared per unit - basic and diluted | 0.045 | 0.045 | 0.09 | 0.075 |
Distributions declared to unitholders - basic | 3,548 | 3,543 | 7,094 | 5,905 |
Distributions declared to unitholders - diluted | 4,033 | 4,019 | 8,059 | 6,399 |
Dividends declared to Series C holders | 1,011 | 1,011 | 2,011 | 2,011 |
FFO diluted (1) | 16,653 | 16,304 | 26,454 | 20,937 |
FFO per unit - diluted (1) | 0.19 | 0.18 | 0.30 | 0.23 |
FFO payout ratio - diluted, trailing twelve months (1) | 33.9% | 11.9% | 33.9% | 11.9% |
Normalized FFO per unit - diluted (1) | 0.14 | 0.15 | 0.21 | 0.18 |
AFFO diluted (1) | 13,514 | 13,622 | 20,595 | 16,098 |
AFFO per unit - diluted (1) | 0.15 | 0.15 | 0.23 | 0.18 |
AFFO payout ratio - diluted, trailing twelve months (1) | 44.8% | 14.1% | 44.8% | 14.1% |
(1) See “Non-IFRS and Other Financial Measures” |
SELECTED INFORMATION | ||
(thousands of dollars) | 2023 | |
Total assets | 1,055,155 | 1,052,795 |
Total liabilities | 732,959 | 730,689 |
Total non-current liabilities | 641,657 | 667,807 |
Term loans and revolving credit facility | 639,431 | 643,929 |
Debt to gross book value (1) | 51.6% | 52.6% |
Debt to EBITDA (times) (1) | 9.8 | 9.8 |
Interest coverage ratio (times) (1) | 2.1 | 2.1 |
Term loans and revolving credit facility: | ||
Weighted average interest rate | 4.55% | 4.46% |
Weighted average term to maturity (years) | 2.5 | 3.0 |
Number of rooms | 7,917 | 8,024 |
Number of properties | 70 | 71 |
Number of restaurants | 14 | 14 |
(1) See “Non-IFRS and Other Financial Measures”
2023 SECOND QUARTER OPERATING RESULTS
(thousands of dollars) | Three months ended | Three months ended | Six months ended | Six months ended |
ADR (1) | 133 | 125 | 132 | 121 |
Occupancy (1) | 73.8% | 72.8% | 69.7% | 68.3% |
RevPAR (1) | 98 | 91 | 92 | 83 |
Revenue | 75,483 | 75,649 | 140,941 | 137,425 |
Operating expenses | 38,732 | 37,762 | 74,258 | 70,362 |
Energy | 3,021 | 2,981 | 6,243 | 6,214 |
Property maintenance | 3,768 | 3,496 | 7,292 | 6,868 |
Property taxes, insurance and ground lease before IFRIC 21 | 4,675 | 4,755 | 9,123 | 9,826 |
Total expenses | 50,196 | 48,994 | 96,916 | 93,270 |
NOI | 25,287 | 26,655 | 44,025 | 44,155 |
NOI Margin % | 33.5% | 35.2% | 31.2% | 32.1% |
IFRIC 21 property taxes adjustment | (1,279) | (1,287) | (580) | (744) |
Depreciation and amortization | 8,647 | 10,079 | 17,268 | 20,298 |
Income from operating activities | 17,919 | 17,863 | 27,337 | 24,601 |
Other expenses | 6,761 | 3,364 | 19,188 | 14,825 |
Current income tax expense/ (recovery) | 515 | 68 | 531 | 131 |
Deferred income tax (recovery)/ expense | (15) | 746 | (1,440) | (165) |
Income and comprehensive income | 10,658 | 13,685 | 9,058 | 9,810 |
(1) See “Non-IFRS and Other Financial Measures”. For the three and six months ended |
FINANCIAL INFORMATION
This news release should be read in conjunction with AHIP’s unaudited condensed consolidated interim financial statements, and management’s discussion and analysis for the three and six months ended
Q2 2023 CONFERENCE CALL
Management will host a webcast and conference call at
To participate in the conference call, participants should register online via AHIP’s website. A dial-in and unique PIN will be provided to join the call. Participants are requested to register a minimum of 15 minutes before the start of the call. An audio webcast of the conference call is also available, both live and archived, on the Events & Presentations page of AHIP’s website: www.ahipreit.com.
ABOUT
NON-IFRS AND OTHER FINANCIAL MEASURES
Management believes the following non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures are relevant measures to monitor and evaluate AHIP’s financial and operating performance. These measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures and ratios are included to provide investors and management additional information and alternative methods for assessing AHIP’s financial and operating results and should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS.
NON-IFRS FINANCIAL MEASURES:
FFO: FFO measures operating performance and is calculated in accordance with
AFFO: AFFO is defined as a recurring economic earnings measure and calculated in accordance with REALPAC’s definition. AFFO – basic is calculated as FFO – basic less maintenance capital expenditures. AFFO – diluted is calculated as FFO – diluted less maintenance capital expenditures. The most comparable IFRS measure to AFFO is net and comprehensive income (loss), for which a reconciliation is provided in this news release.
Normalized FFO: calculated as FFO excluding non-recurring items. For the three months ended
Net Operating Income (“NOI”): calculated by adjusting income from operating activities for depreciation and amortization, and IFRIC 21 property taxes. The most comparable IFRS measure to NOI is income from operating activities, for which a reconciliation is provided in this news release.
Normalized NOI: calculated as NOI plus business interruption proceeds or government grant for the loss of revenue for the reporting periods. For the three months ended
EBITDA: calculated by adjusting income from operating activities for depreciation and amortization, IFRIC 21 property taxes, hotel management fees and general administrative expenses. The sum of management fees for hotel and general administrative expenses is equal to corporate and administrative expenses in the Financial Statements. The most comparable IFRS measure to EBITDA is income from operating activities, for which a reconciliation is provided in this news release.
Debt: calculated as the sum of term loans and revolving credit facility, the face value of convertible debentures, unamortized portion of debt financing costs, government guaranteed loan, lease liabilities and unamortized portion of mark-to-market adjustments. The most comparable IFRS measure to debt is total liabilities, for which a reconciliation is included in this news release.
Gross book value: calculated as the sum of total assets, accumulated depreciation and impairment on property, buildings and equipment, and accumulated amortization on intangible assets. The most comparable IFRS measure to gross book value is total assets, for which a reconciliation is included in this news release.
Interest expense: calculated by adjusting finance costs for gain/loss on debt settlement, amortization of debt financing costs, accretion of debenture liability, amortization of debenture costs, dividends on series B preferred shares of US REIT and amortization of mark-to-market adjustments because interest expense excludes certain non-cash accounting items and dividends on preferred shares. The most comparable IFRS measure to interest expense is finance costs, for which a reconciliation is included in this news release.
NON-IFRS RATIOS:
FFO per unit – basic/diluted: calculated as FFO – basic/diluted divided by weighted average number of units outstanding - basic/diluted respectively for the reporting periods.
Normalized FFO per unit – basic/diluted: calculated as normalized FFO – basic/diluted divided by weighted average number of units outstanding - basic/diluted respectively for the reporting periods.
AFFO per unit – basic/diluted: calculated as AFFO – basic/diluted divided by weighted average number of units outstanding - basic/diluted respectively for the reporting periods.
FFO payout ratio – basic, trailing twelve months: calculated as total distributions declared to unitholders – basic, divided by total FFO – basic, for the twelve months ended
FFO payout ratio – diluted, trailing twelve months: calculated as total distributions declared to unitholders – diluted, divided by total FFO – diluted, for the twelve months ended
AFFO payout ratio – basic, trailing twelve months: calculated as total distributions declared to unitholders – basic, divided by total AFFO – basic, for the twelve months ended
AFFO payout ratio – diluted, trailing twelve months: calculated as total distributions declared to unitholders – diluted, divided by total AFFO – diluted, for the twelve months ended
NOI margin: calculated as NOI divided by total revenue.
EBITDA margin: calculated as EBITDA divided by total revenue.
CAPITAL MANAGEMENT MEASURES:
Debt to gross book value: calculated as debt divided by gross book value. Debt to gross book value is a primary measure of capital management and leverage.
Debt to EBITDA: calculated as debt divided by the trailing twelve months of EBITDA. Debt to EBITDA measures the amount of income generated and available to pay down debt before covering interest, taxes, depreciation, and amortization expenses.
Interest coverage ratio: calculated as EBITDA for the trailing twelve months divided by interest expense for the trailing twelve months period. The interest coverage ratio measures AHIP’s ability to meet required interest payments related to its outstanding debt and dividends on the series B preferred shares of US REIT.
SUPPLEMENTARY FINANCIAL MEASURES:
Occupancy is a major driver of room revenue as well as food and beverage revenues. Fluctuations in occupancy are accompanied by fluctuations in most categories of variable hotel operating expenses, including housekeeping and other labor costs. ADR also helps to drive room revenue with limited impact on other revenues. Fluctuations in ADR are accompanied by fluctuations in limited categories of hotel operating expenses, such as franchise fees and credit card commissions, since variable hotel operating expenses, such as labor costs, generally do not increase or decrease correspondingly. Thus, increases in RevPAR attributable to increases in occupancy typically reduce EBITDA and EBITDA Margins, while increases in RevPAR attributable to increases in ADR typically result in increases in EBITDA and EBITDA Margins.
Occupancy: calculated as total number of hotel rooms sold divided by total number of rooms available for the reporting periods. Occupancy is a metric commonly used in the hotel industry to measure the utilization of hotels’ available capacity. In Q1 and Q2 2023, the occupancy calculation excluded
Average daily rate (“ADR”): calculated as total room revenue divided by total number of rooms sold for the reporting periods. ADR is a metric commonly used in the hotel industry to indicate the average revenue earned per occupied room in a given time period. In Q1 and Q2 2023, the ADR calculation excluded
Revenue per available room (“RevPAR”): calculated as occupancy multiplied by ADR for the reporting periods. In Q1 and Q2 2023, the RevPAR calculation excluded
Same property ADR, occupancy, RevPAR, and NOI margin: measured for properties owned by AHIP for both the current reporting periods and the same periods in 2022. In Q1 and Q2 2023, same property ADR, occupancy and RevPAR calculation excluded the seven hotels sold in 2022, the one hotel sold in 2023, and
NON-IFRS RECONCILIATION
The following table reconciles FFO to income (loss) and comprehensive income (loss), the most comparable IFRS measure as presented in the financial statements:
(thousands of dollars, except per unit amounts) | Three months ended | Three months ended | Six months ended | Six months ended |
Income and comprehensive income | 10,658 | 13,685 | 9,058 | 9,810 |
Income attributable to non-controlling interest | (1,011) | (1,011) | (2,011) | (2,011) |
Depreciation and amortization | 8,647 | 10,079 | 17,268 | 20,298 |
(Gain) loss on sale of property | (2,401) | 555 | (2,401) | (1,049) |
Loss on property, building and equipment | 276 | - | 4,168 | - |
IFRIC 21 property taxes adjustment | (1,279) | (1,287) | (580) | (744) |
Change in fair value of interest rate swap contracts | 834 | (1,281) | 1,925 | (4,629) |
Change in fair value of warrants | (149) | (6,195) | (1,719) | (2,850) |
Impairment of cash-generating units | - | - | - | 257 |
Deferred income tax (recovery) expense | (15) | 746 | (1,440) | (165) |
FFO basic (1) | 15,560 | 15,291 | 24,268 | 18,917 |
Interest, accretion and amortization on convertible debentures | 1,093 | 1,013 | 2,186 | 2,020 |
FFO diluted (1) | 16,653 | 16,304 | 26,454 | 20,937 |
FFO per unit – basic (1) | 0.20 | 0.19 | 0.31 | 0.24 |
FFO per unit – diluted (1) | 0.19 | 0.18 | 0.30 | 0.23 |
FFO payout ratio – basic – trailing twelve months (1) | 32.8% | 11.5% | 32.8% | 11.5% |
FFO payout ratio – diluted – trailing twelve months (1) | 33.9% | 11.9% | 33.9% | 11.9% |
Non-recurring items: | ||||
Gain on debt settlement | - | (2,344) | - | (2,344) |
Other income | (4,126) | (898) | (7,468) | (2,192) |
Measurements excluding non-recurring items: | ||||
Normalized FFO diluted (1) | 12,527 | 13,062 | 18,986 | 16,401 |
Normalized FFO per unit – diluted (1) | 0.14 | 0.15 | 0.21 | 0.18 |
Weighted average number of units outstanding: | ||||
Basic (000’s) | 78,834 | 78,749 | 78,817 | 78,737 |
Diluted (000’s) (2) | 89,622 | 89,308 | 89,484 | 89,124 |
(1) See “Non-IFRS and Other Financial Measures” (2) The calculation of weighted average number of units outstanding for FFO per unit - diluted and normalized FFO per unit - diluted included the convertible debentures for the three and six months ended |
RECONCILIATION OF FFO TO AFFO | |||
(thousands of dollars, except per unit amounts) | Three months ended | Three months ended | Six months ended |
FFO basic (1) | 15,560 | 15,291 | 18,917 |
FFO diluted (1) | 16,653 | 16,304 | 20,937 |
Maintenance capital expenditures | (3,139) | (2,682) | (4,839) |
AFFO basic (1) | 12,421 | 12,609 | 14,078 |
AFFO diluted (1) | 13,514 | 13,622 | 16,098 |
AFFO per unit - basic (1) | 0.16 | 0.16 | 0.18 |
AFFO per unit - diluted (1) | 0.15 | 0.15 | 0.18 |
AFFO payout ratio – basic – trailing twelve months (1) | 44.9% | 13.7% | 13.7% |
AFFO payout ratio – diluted – trailing twelve months (1) | 44.8% | 14.1% | 14.1% |
Measurements excluding non-recurring items: | |||
AFFO diluted (1) | 9,388 | 10,380 | 11,562 |
AFFO per unit - diluted (1) | 0.10 | 0.12 | 0.13 |
(1) See “Non-IFRS and Other Financial Measures” | |||
DEBT TO GROSS BOOK VALUE | |||
(thousands of dollars) | |||
Debt (1) | 694,377 | 699,881 | |
Gross Book Value (1) | 1,346,663 | 1,329,865 | |
Debt-to-Gross Book Value (1) | 51.6% | 52.6% | |
(1) See “Non-IFRS and Other Financial Measures” | |||
(thousands of dollars) | |||
Term loans and revolving credit facility | 639,431 | 643,929 | |
2026 Debentures (at face value) | 50,000 | 50,000 | |
Unamortized portion of debt financing costs | 3,521 | 4,437 | |
Lease liabilities | 1,431 | 1,591 | |
Unamortized portion of mark-to-market adjustments | (6) | (76) | |
Debt (1) | 694,377 | 699,881 | |
(1) See “Non-IFRS and Other Financial Measures” | |||
(thousands of dollars) | |||
Total Assets | 1,055,155 | 1,052,795 | |
Accumulated depreciation and impairment | 286,626 | 272,540 | |
on property, buildings and equipment | |||
Accumulated amortization on intangible assets | 4,882 | 4,530 | |
Gross Book Value (1) | 1,346,663 | 1,329,865 | |
(1) See “Non-IFRS and Other Financial Measures” |
DEBT TO EBITDA
(thousands of dollars) | ||
Debt (1) | 694,377 | 699,881 |
EBITDA (trailing twelve months) (1) | 71,001 | 71,293 |
Debt-to-EBITDA (times) (1) | 9.8x | 9.8x |
(1) See “Non-IFRS and Other Financial Measures”
The reconciliation of income from operating activities to NOI, hotel EBITDA and EBITDA is shown below:
(thousands of dollars) | Three months ended | Three months ended | Six months ended | Six months ended |
Income from operating activities | 17,919 | 17,863 | 27,337 | 24,601 |
Depreciation and amortization | 8,647 | 10,079 | 17,268 | 20,298 |
IFRIC 21 property taxes | (1,279) | (1,287) | (580) | (744) |
NOI (1) | 25,287 | 26,655 | 44,025 | 44,155 |
Management fees | (2,420) | (2,490) | (4,556) | (4,608) |
22,867 | 24,165 | 39,469 | 39,547 | |
General administrative expenses | (2,634) | (1,922) | (5,192) | (4,497) |
EBITDA (1) | 20,233 | 22,243 | 34,277 | 35,050 |
(1) See “Non-IFRS and Other Financial Measures”
The reconciliation of finance costs to interest expense is shown below:
(thousands of dollars) | Three months ended | Three months ended | Six months ended | Six months ended |
Finance costs | 9,233 | 6,799 | 17,925 | 16,241 |
Gain on debt settlement | - | 2,344 | - | 2,344 |
Amortization of debt financing costs | (496) | (593) | (851) | (1,085) |
Accretion of Debenture liability | (241) | (183) | (483) | (365) |
Amortization of Debenture costs | (100) | (72) | (200) | (146) |
Dividends on Series B preferred shares | 12 | (4) | (9) | (8) |
Debt defeasance and other costs | (19) | - | (19) | - |
Interest expense (1) | 8,389 | 8,291 | 16,363 | 16,981 |
(1) See “Non-IFRS and Other Financial Measures” |
For information on the most directly comparable IFRS measures, composition of the measures, a description of how AHIP uses these measures, and an explanation of how these measures provide useful information to investors, please refer to AHIP’s management discussion and analysis for the three and six months ended
FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute “forward-looking information” and “financial outlook” within the meaning of applicable securities laws. Forward-looking information and financial outlook generally can be identified by words such as “anticipate”, “believe”, “continue”, “expect”, “estimates”, “intend”, “may”, “outlook”, “objective”, “plans”, “should”, “will” and similar expressions suggesting future outcomes or events. Forward-looking information and financial outlook include, but are not limited to, statements made or implied relating to the objectives of AHIP, AHIP’s strategies to achieve those objectives and AHIP’s beliefs, plans, estimates, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Forward-looking information and financial outlook in this news release includes, but is not limited to, statements with respect to: AHIP’s expectations with respect to its future performance, including specific expectations in respect to certain categories of its properties, including the
Although the forward-looking information and financial outlook contained in this news release are based on what AHIP’s management believes to be reasonable assumptions, AHIP cannot assure investors that actual results will be consistent with such information. Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: inflation, labor shortages, and supply chain disruptions will negatively impact the
Forward-looking information and financial outlook involve significant risks and uncertainties and should not be read as guarantees of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking information and financial outlook, accordingly undue reliance should not be placed on such forward-looking information and financial outlook. Those risks and uncertainties include, among other things, risks related to: AHIP may not achieve its expected performance levels in 2023; inflation, labor shortages, supply chain disruptions; AHIP’s insurance claims with respect to its weather damaged properties may be denied in whole or in part; AHIP may not achieve its expected performance levels in 2023; AHIP’s weather-damaged properties may not resume service in accordance with currently contemplated schedules; AHIP’s brand partners may impose revised service standards and capital requirements which are adverse to AHIP; property improvement plan renovations may not commence or complete in accordance with currently expected timing and may suffer from increased material and labor costs; recent recovery trends at AHIP’s properties may not continue and may regress; AHIP’s strategies with respect to margin enhancement, completion of accretive capital projects, liquidity, divestiture of non-core assets and acquisitions may not be successful; AHIP may not be successful in reducing its leverage; monthly cash distributions are not guaranteed and remain subject to the approval of the Board of Directors, compliance with the terms of its credit facility and investor rights agreement and may be reduced or suspended at any time at the discretion of the Board; AHIP may not be able to refinance debt obligations as they become due or may due so on terms less favorable to AHIP than under AHIP’s existing loan agreements; AHIP may not be successful in renewing or replacing its interest rate swaps on reasonable terms or at all; general economic conditions and consumer confidence; the growth in the
To the extent any forward-looking information constitutes a “financial outlook” within the meaning of applicable securities laws, such information is being provided to investors to assist in their understanding of AHIP’s expected costs of remediation and renovation and expected proceeds of insurance in respect of AHIP’s weather-damaged properties, and management’s expectations for certain aspects of AHIP’s financial performance for the remainder of 2023.
The forward-looking information and financial outlook contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information and financial outlook reflect management's current beliefs and are based on information currently available to AHIP. The forward-looking information and financial outlook are made as of the date of this news release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
For additional information, please contact:
Investor Relations
ir@ahipreit.com
Source: American Hotel Income Properties
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