American Hotel Income Properties REIT LP announced 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.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP, 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.