American Hotel Income Properties REIT LP Provides Operational Update
VANCOUVER, BC, July 2, 2020 /CNW/ - American Hotel Income Properties REIT LP ("AHIP" or the "Company") (TSX: HOT.UN) (HOT.U) and (HOT.DB.U) announced today that for the month of June, occupancy across its portfolio of 79 Premium Branded hotels averaged 49.0%, an increase from an average of 32.8% in May and 21.7% in April. Most recently, in the last two weeks of June, AHIP recorded average hotel occupancy of 52.3%. As previously disclosed, the Company believes when monthly occupancy returns to a sustained 50% level, its current cost containment measures will enable it to operate at an overall cashflow breakeven level.
All 79 of AHIP's hotels are open and accepting guests. The Company's 24 extended stay hotels continue to be the best performing segment of AHIP's portfolio, averaging 64.6% occupancy in June.
AHIP also remains current on all of its monthly loan payment obligations. On June 30, 2020, AHIP completed the approximately US$1.2 million semi-annual interest payment on its outstanding 5.0% convertible unsecured subordinated debentures (the "Debentures"). AHIP's Debentures are listed on the Toronto Stock Exchange under the ticker HOT.DB.U and pay interest semi-annually in U.S. dollars. Currently, there are approximately US$48.9 million principal amount of Debentures outstanding, which mature on June 30, 2022.
FORWARD LOOKING INFORMATION
Certain statements in this news release may constitute "forward-looking information" or "financial outlook" within the meaning of applicable securities laws (also known as forward-looking statements). Forward looking information and financial outlook involve known and unknown risks, uncertainties and other factors, and may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information and financial outlook. Forward-looking information and financial outlook generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking information and financial outlook in this news release includes, but are not limited to, statements with respect to: AHIP's belief that when monthly occupancy returns to a sustained 50% level, its current cost containment measures will enable it to operate at an overall cashflow breakeven level; and AHIP's stated long-term objectives.
Forward-looking information and financial outlook are based on a number of key expectations and assumptions made by AHIP, including, without limitation: current occupancy recovery trends at AHIP's hotels will continue and AHIP will achieve its current cashflow targets; AHIP's cost containment strategies will achieve their stated objectives; and there will be a meaningful economic recovery in the U.S. and within the U.S. hotel industry. Although the forward-looking information and financial outlook contained in this news release is 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 and financial outlook are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. 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. Those risks and uncertainties include, among other things, risks related to: AHIP's cost containment strategies may not achieve their stated objectives, and cash savings generated may be less than anticipated; current occupancy recovery trends at AHIP's hotels may not continue or may decelerate; AHIP may not achieve break-even or positive cashflow levels in accordance with the timing currently expected, or at all; and AHIP may not achieve its stated long-term objectives. Management believes that the expectations reflected in forward-looking information and financial outlook contained herein are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with this forward-looking information and financial outlook. Additional information about risks and uncertainties is contained in AHIP's MD&A dated May 12, 2020 and annual information form for the year ended December 31, 2019, copies of which are available on SEDAR at www.sedar.com.
To the extent any forward-looking information or statements in this news release constitute a "financial outlook" within the meaning of applicable securities laws, such information is being provided to assist investors in better understanding the potential financial impact on AHIP of current occupancy recovery trends at AHIP's hotels and AHIP's cost containment strategies.
The forward-looking information and financial outlook contained herein are expressly qualified in their 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.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
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 portfolio of 79 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, Wyndham 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. More information is available at www.ahipreit.com.
SOURCE American Hotel Income Properties REIT LP
Jamie Kokoska, Director, Investor Relations, Phone: 604-670-6242, Email: [email protected]
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