The following is a summary of the American Hotel Income Properties REIT LP Common Units (AHOTF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 2024 total revenue grew by 2.3% with RevPAR finishing at $98, a 2% improvement over Q3 2023.

• Normalized diluted funds from operations (FFO) was $0.07 per unit for the quarter, compared to $0.11 per unit in Q3 2023.

• Debt to gross book value decreased by 180 basis points so far this year, and debt to trailing 12-month EBITDA decreased by 1.0 times.

Business Progress:

• Completed dispositions of 11 properties for gross proceeds of $112 million; five other properties under sales agreements expected before year-end for $53 million.

• Initiatives for cost control and efficiency, including reducing dependency on contract labor, stabilizing room costs, and executing capital improvements.

• Ongoing refinancing efforts with a major US bank to address the revolving credit facility and upcoming debt maturities.

Opportunities:

• Dispositions focused on properties in markets with low demand growth, allowing capital reallocation to more profitable opportunities.

• Reduction in leverage and debt providing potential for improved financial stability and operational flexibility.

Risks:

• Continued elevated operating expenses impacting NOI margin, which finished at 30.2%, roughly 50 basis points below the same period in 2023.

• High levels of employee turnover and a tight labor market leading to increased labor expenses and potential for inconsistent operating performance.

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