American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U) announced yesterday its financial results for the three and six months ended June 30, 2021.
“The second quarter brought three sequential months of improving revenue and operating margins, a trend that began in January and has continued through July. Accelerating demand from the domestic leisure traveler resulted in rate increases that have narrowed the gap to 2019 pre-COVID levels,” said Jonathan Korol, CEO. “The monthly improvements to average daily rate across our portfolio drove hotel EBITDA margins of 38.6% in Q2, surpassing most industry comparables. While our properties have yet to achieve pre-COVID revenues, they are close to 2019 same period cash flow levels due to the improved operating margins.”
“June 2021 was our best revenue-generating month since the pandemic began, only to be eclipsed by our recent performance in July. We are encouraged by the sequential monthly rate-driven RevPAR increases that have accompanied higher leisure traffic at our properties.” Mr. Korol added: “While we see signals of improving business travel through improving lead volumes and small group activity, the leisure traveler continues to drive hotel demand. As the business traveler returns, we anticipate further improvements to a recovery in weekday demand. Following the completion of our strategic equity financing with BentallGreenOak Real Estate Advisors LP and Highgate Capital Investments, LP Bentall and concurrent amendments to our credit facility completed in Q1, we are confident that AHIP is well positioned to navigate any negative impacts to our business that could result from the ongoing market uncertainty resulting from COVID-19.”
“In Q2 we were very pleased to welcome Travis Beatty to our executive team as Chief Financial Officer.” Mr. Korol continued: “Travis brings both experience and recognition within the broader investment community and is an important member of a talented team that will be positioning AHIP to grow its portfolio of premium-branded select service hotel properties across the U.S.”
Post time: Aug-28-2021