American Hotel Income Properties REIT LP Reports Q3 2025 Results With Same Property 1.9% RevPAR Growth and Provides Corporate Update

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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.

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Revenue per available room (“RevPAR”): calculated as occupancy multiplied by ADR for the reporting periods.

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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 2024. In Q3 2023, the same property ADR, occupancy, RevPAR and NOI margin calculations excluded the Residence Inn Neptune and Courtyard Wall in New Jersey as these two hotels had limited availability. In Q3 2025 and Q3 2024, the same property ADR, occupancy, RevPAR and NOI margin calculations included the same two hotels for comparison purposes.

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Enterprise value: is a supplementary financial measure and is calculated as the sum of (i) total debt obligations as reflected on the September 30, 2025 Statement of Financial Position (ii) AHIP’s market capitalization (which is calculated as the Canadian dollar closing price of the units on the TSX as of September 30, 2025, converted to US dollars at a foreign exchange rate of CDN$1.39 to US$1, multiplied by the total number of units issued and outstanding as at such date), and (iii) face value of series C preferred shares, less (iv) the amount of cash and cash equivalents reflected on the September 30, 2025 Statement of Financial Position.

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NON-IFRS RECONCILIATION

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INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) TO FFO

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_{⁽¹⁾ See “Non-IFRS and Other Financial Measures”
⁽²⁾ The calculation of FFO diluted, FFO per unit – diluted, normalized FFO diluted, normalized FFO per unit – diluted, weighted average number of units outstanding – diluted for the three and nine months ended September 30, 2025, and the three and nine months ended September 30, 2024, excluded the convertible debentures because they were anti-dilutive.}

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RECONCILIATION OF FFO TO AFFO

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_{⁽¹⁾ See “Non-IFRS and Other Financial Measures”}

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DEBT TO GROSS BOOK VALUE 

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DEBT 

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GROSS BOOK VALUE

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DEBT TO EBITDA

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INTEREST COVERAGE RATIO

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The reconciliation of NOI to hotel EBITDA and EBITDA is shown below:

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The reconciliation of NOI to normalized NOI is shown below:

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The reconciliation of finance costs to interest expense is shown below:

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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 nine months ended September 30, 2025 and 2024, available on AHIP’s website at www.ahipreit.com, and under AHIP’s profile on SEDAR+ at www.sedarplus.com.

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FORWARD-LOOKING INFORMATION

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This news release contains 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 include, but are not limited to, statements with respect to: AHIP management’s expectation as to the impacts on AHIP’s business of the seasonal nature of the lodging industry, inflation, competition and weather conditions; AHIP’s planned capital expenditures, including the estimated amount and timing of such expenditures and AHIP’s expected means of funding such expenditures; AHIP’s expectations regarding the effects of its planned capital expenditures; AHIP’s expectations with respect to the performance of its hotel portfolio; AHIP’s expectations with respect to inflation, labor supply, labor costs, interest rates and other market financial and macroeconomic conditions in 2025 and the expected impacts thereof on AHIP’s financial position and performance, including on ADR, occupancy and RevPAR, NOI and NOI margins; AHIP’s belief that recent proposed and enacted U.S. policies and surrounding tariffs, trade restrictions, change in government policies add to the uncertainty of macroeconomic conditions and inflation; AHIP expects limited growth and continued volatility in the U.S. economy; AHIP’s expectation that same property RevPar will grow for the remainder of the year accompanied by continued challenges with margins due to elevated costs ; AHIP’s strategic initiatives and the intended outcomes thereof, including strengthening AHIP’s financial position and improving unitholder value; AHIP’s expectations with respect to the macroeconomic and operating environment, including certain specific expectations for the 2025 fiscal year; AHIP continuing to execute its strategy to sell hotel properties to enhance liquidity, reduce debt and manage future financial obligations; AHIP’s objective to raise sufficient capital to address the Series C Shares and the Debentures and the potential strategies for doing so; AHIP’s continued marketing of approximately ten hotels, and the factors that are expected to impact the number of hotels sold; AHIP’s planned property dispositions, including the expected terms and timing thereof and the financial impact thereof on AHIP (including the estimated amount and uses of the proceeds from such dispositions); AHIP not having any debt maturities until the fourth quarter of 2026, and its intended means of addressing such debt maturities; AHIP’s intention to cause the U.S. Subsidiary Inc. to cease to qualify as a REIT under the Code in respect of the U.S. Subsidiary Inc.’s 2025 fiscal year and instead be treated as taxable C corporation, and the anticipated benefits and risks to AHIP of doing so; AHIP’s intentions and expectations with respect to the NCIB and ASPP and their impact on unitholders; AHIP’s long-term overall borrowing strategy; the possibility that AHIP may utilize non-recourse foreclosure processes where loan value at maturity is greater than the ability to refinance the loan and market value of the hotel; the key liquidity risks facing AHIP and its planned strategies for dealing with same; AHIP remaining focused on creating long-term value for its Unitholders; AHIP being in the process of curing defaults under certain of its Marriott franchise agreements, and in turn the related defaults under certain of its CMBS loan agreements, by seeking to improve the performance of the applicable hotels; statements with respect AHIP’s intended status under tax legislation in the U.S. and Canada; and AHIP’s stated long-term objectives.

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Although AHIP believes that the expectations reflected in the forward-looking information and financial outlook contained in this news release are reasonable, AHIP can give no assurance that these expectations will prove to be correct. The estimates and assumptions, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth in this news release as well as the following: inflation and labor shortages, will negatively impact the U.S. economy, U.S. hotel industry and AHIP’s business; AHIP will continue to have sufficient funds to meet its financial obligations; AHIP’s strategies with respect to completion of capital projects, addressing future financial obligations, and divestiture of assets will be successful and achieve their intended effects; AHIP will complete its currently planned divestitures on the terms currently contemplated and in accordance with the timing currently contemplated; AHIP will meet its objective of generating sufficient capital to address the Series C Shares and the Debentures; AHIP will not sell all of the additional hotels it is currently marketing; AHIP’s will cause the U.S. Subsidiary Inc. to cease to qualify as a REIT under the Code in respect of the U.S. Subsidiary Inc.’s 2025 fiscal year and instead be treated as taxable C corporation, and AHIP will realize the anticipated benefits of doing so; the ability of AHIP to achieve the anticipated benefits of the NCIB; that Units will trade below their value from time to time; that AHIP will complete purchases of Units pursuant to the NCIB and ASPP; AHIP will continue to have good relationships with its brand partners; AHIP will be successful in opposing the Claim and in its counter-claim in a manner that is acceptable to AHIP; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP, including the ability to refinance maturing debt as it becomes due on terms acceptable to AHIP; AHIP will be successful in curing the existing defaults under certain of its Marriott franchise agreements, and in turn the related defaults under certain of its CMBS loan agreements; AHIP’s future level of indebtedness will remain consistent with AHIP’s current expectations; the useful lives and replacement cost of AHIP’s assets being consistent with management’s estimates thereof; the SIFT Measures in the Tax Act (as defined below) will continue to not apply to AHIP; the impact of the current economic climate and the current global financial conditions on AHIP’s operations, including AHIP’s financing capability and asset value, will remain consistent with AHIP’s current expectations; there will be no material changes to tax laws, government and environmental regulations adversely affecting AHIP’s operations, financing capability, structure or distributions; conditions in the international and, in particular, the U.S. hotel and lodging industry, including competition for acquisitions, will be consistent with the current economic climate; and AHIP will achieve its long term objectives.

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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 or financial outlook. Those risks and uncertainties include, among other things, risks related to: AHIP may not achieve its expected performance levels in 2025; inflation and labor shortages may continue to negatively impact AHIP’s financial performance and position; risk of an economic recession in the U.S.; AHIP’s brand partners may impose revised service standards and capital requirements which are adverse to AHIP; PIP renovations may not commence or complete in accordance with currently expected timing and may suffer from increased material and labor costs; AHIP’s strategic initiatives with respect to strengthening AHIP’s financial position, addressing future financial obligations and divestures of assets may not be successful and may not achieve their intended outcomes; AHIP may not complete its currently planned divestures on the terms currently contemplated or in accordance with the timing currently contemplated, or at all; AHIP may not meet its objective of generating sufficient capital to address the Series C Shares and the Debentures; AHIP may not receive acceptable offers on some or all of the properties it is currently marketing; AHIP may not realise the expected benefits of causing the U.S. Subsidiary Inc. to cease to qualify as a REIT under the Code or such benefits may be less than anticipated; AHIP may not be successful in reducing its leverage; there is no guarantee that monthly distributions will be reinstated, and if reinstated, as to the timing thereof or what the amount of the monthly distribution will be; AHIP may not be able to refinance debt obligations as they become due or may do so on terms less favorable to AHIP than under AHIP’s existing loan agreements; refinanced loans may be refinanced at significantly higher interest rates; the Federal Reserve may not reduce interest rates in accordance with the timing or the quantum anticipated by management, or at all; the failure to realize the anticipated benefits of the NCIB; the risk that the market price of the Units will be too high to permit purchases under the NCIB and/or ASPP; a failure to execute purchases under the NCIB and ASPP; the outcome of the Claim and the counter-claim under the HMAs cannot be predicted, and may be determined in a manner unfavorable to AHIP, which may have a substantial negative impact on AHIP’s financial position and results of operations; AHIP may incur significant costs in relation to the Claim and counter-claim and may be ordered to pay damages and costs in any such proceedings; the outcome of the Claim and counter-claim may be subject to appeal; if Aimbridge is removed as the hotel manager, the financial terms of the engagement of any replacement hotel manager cannot be determined at this time and could less advantageous to AHIP than the terms of the HMAs, and AHIP may suffer some operational disruption in the course of any replacement of Aimbridge; AHIP may not be successful in curing the existing defaults under certain of its Marriott franchise agreements and the related defaults under certain of its CMBS loan agreements, which if not cured could result in the termination of the related franchise agreements, and acceleration of the related CMBS loans, forced foreclosure proceedings and claims for damages against AHIP; general economic conditions and consumer confidence; the growth in the U.S. hotel and lodging industry; prices for the Units and debentures; liquidity; tax risks; ability to access debt and capital markets; financing risks; changes in interest rates; the financial condition of, and AHIP’s relationships with, its external hotel manager and franchisors; real property risks, including environmental risks; the degree and nature of competition; ability to acquire accretive hotel investments; environmental matters; and changes in legislation. Additional information about risks and uncertainties is contained in this news release and in AHIP’s most recently filed AIF, a copy of which is available on SEDAR+ at www.sedarplus.com.

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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 2025 capital plan; estimated proceeds from the planned disposition of certain hotel properties and the expected use thereof and impact thereon on AHIP’s financial position; and management’s expectations for certain aspects of AHIP’s financial performance for the remainder of 2025.

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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.

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For additional information, please contact:

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