American Hotel Income Properties REIT LP announced its financial results for the three months ended March 31, 2021.
“Accelerating COVID-19 vaccination rates fueled occupancy- and rate-driven revenue increases across our Portfolio in the first quarter of 2021,” said Jonathan Korol, CEO. Mr. Korol continued, “March 2021 was our best revenue-generating month since the pandemic began, only to be eclipsed again by our recent performance in April. We are encouraged by the sequential monthly rate increases that have accompanied higher traffic at our properties, driven mostly by the domestic leisure traveler.”
“In Q1, AHIP surpassed most industry comparables, delivering Hotel EBITDA margin of 29.1%. As one of the only public lodging REITs to be Hotel EBITDA positive every month since April 2020, we’re proud of the cost containment measures implemented by our management team at the early stages of the pandemic.” Mr. Korol added: “As we enter the seasonally strongest quarters in our industry with an improved balance sheet and the addition of strategic investment partners, we will continue to be focused on driving revenue growth, enhancing margins, improving our debt profile and investing opportunistically.”
OPERATIONAL & FINANCIAL HIGHLIGHTS
Jan-21 |
Feb-21 |
Mar-21 |
Q1 2021 |
Apr-21 |
|||
ADR |
$90.81 |
$93.87 |
$98.22 |
$94.70 |
$103.15 |
||
Occupancy |
51.2% |
59.9% |
69.4% |
60.2% |
68.6% |
||
RevPAR |
$46.52 |
$56.24 |
$68.13 |
$57.01 |
$70.77 |
||
RevPAR vs.2020 |
(36.2%) |
(35.4%) |
27.5% |
(19.4%) |
234.3% |
||
RevPAR vs.2019 |
(37.1%) |
(34.3%) |
(29.9%) |
(33.4%) |
(25.2%) |
CAPITAL METRICS
FIRST QUARTER DEVELOPMENTS
SUBSEQUENT EVENTS
On April 1, 2021, AHIP repaid $16.1 million plus accrued interest on the purchase price payable on the acquisition of 12 Premium Branded hotel properties in 2019, which was included in accounts payable on the consolidated statements of financial position as at March 31, 2021, thereby fully discharging the liability.
Chris Cameron, Chief Investment Officer, will be departing the Company at the end of May 2021 to pursue other opportunities. “On behalf of AHIP, I would like to thank Chris for his service to the Company”, said Jonathan Korol, CEO. Mr. Korol continued, “Chris’s involvement with AHIP began during its initial public offering and he has been a valuable member of the AHIP executive team since 2019. We wish him all the best in his future endeavors.”
“It has been a pleasure working with the AHIP team.” said Mr. Cameron. He added, “I am proud of what we accomplished during my time in advancing AHIP’s transformative portfolio change that will provide a solid asset base for continued growth. I look forward to AHIP’s continued success in the years to come.”
Q1 2021 FINANCIAL RESULTS CONFERENCE CALL
Management will host a conference call at 1:00 p.m. Eastern time / 10:00 a.m. Pacific time on Thursday, May 13, 2021 to review the financial results for the three months ended March 31, 2021.
To participate in this conference call, please dial one of the following numbers at least five minutes prior to the commencement of the call and ask to join the American Hotel Income Properties’ Q1 2021 Analyst Call.
Dial in numbers: |
North America Toll free: |
1-877-291-4570 |
International or local Toronto: |
1-647-788-4919 |
The conference call will also be webcast live (in listen-only mode). The link to the webcast can be found on the Events tab of the following webpage: https://www.ahipreit.com/news-and-events/
CONFERENCE CALL REPLAY
A replay of the conference call will be available by dialing one of the following replay numbers. The replay will be available after 11:30 a.m. Eastern time / 8:30 a.m. Pacific time on May 13, 2021 until June 3, 2021. The webcast recording of this conference call will also be available at www.ahipreit.com on the Events and Presentation page.
Please enter replay PIN number 2984505 followed by the # key.
Replay dial in numbers: |
North America Toll free: |
1-800-585-8367 |
International or local Toronto: |
1-416-621-4642 |
NON-IFRS MEASURES
Certain non-IFRS financial measures are included in this news release, which include NOI, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, and debt-to-gross book value. These terms are not measures recognized under International Financial Reporting Standards (“IFRS“) and do not have standardized meanings prescribed by IFRS. Real estate issuers often refer to NOI, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit as supplemental measures of performance and debt-to-gross book value as a supplemental measure of financial condition.
Debt-to-gross book value, NOI, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, should not be construed as alternatives to measurements determined in accordance with IFRS as indicators of AHIP’s performance or financial condition. AHIP’s method of calculating NOI, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, and debt-to-gross book value may differ from other issuers’ methods and accordingly may not be comparable to measures used by other issuers. For further information, including reconciliations of certain of these non-IFRS financial measures to the closest comparable IFRS measure, please refer to AHIP’s MD&A dated March 9, 2021, which is available on SEDAR at www.sedar.com and on AHIP’s website at www.ahipreit.com.