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

VANCOUVER, British Columbia, Nov. 06, 2025 (GLOBE NEWSWIRE) — American Hotel Income Properties REIT LP (“AHIP”, or the “Company”) (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB. V), today announced its financial results for the three and nine months ended September 30, 2025.

All amounts presented in this news release are in United States dollars (“U.S. dollars”) unless otherwise indicated.

2025 THIRD QUARTER HIGHLIGHTS

• Same Property ADR⁽¹⁾ was $141 for the third quarter of 2025 an increase of 0.7% compared to the same period of 2024.
• Same Property Occupancy⁽¹⁾ was 75.0% for the third quarter of 2025, an increase of 70 bps compared to the same period of 2024.
• Same Property RevPAR⁽¹⁾ was $106 for the third quarter of 2025, increased by 1.9% to compared to the same period of 2024.
• Same property NOI was $13.7 million for the third quarter of 2025, a decrease of 8.1% compared to $14.9 million for the same period of 2024.
• Same property NOI margin was 29.0% for the third quarter of 2025, a decrease of 320 bps compared to 32.2% for the same period of 2024.
• RevPAR⁽¹⁾ increased by 10.5% to $106 for the third quarter of 2025, compared to $95 for the same period of 2024.
• Diluted FFO per unit⁽¹⁾ and normalized diluted FFO per unit⁽¹⁾ were $0.02 for the third quarter of 2025, compared to $0.06 and $0.07 respectively for the same period of 2024.
• Completed the disposition of one hotel property during the quarter for total gross proceeds of $17.4 million at a blended Cap Rate of 6.9% on 2024 annual hotel EBITDA.
• AHIP has no debt maturities until the fourth quarter of 2026.
• AHIP intends to continue its strategy to sell hotel properties to enhance liquidity, reduce debt and manage future financial obligations. AHIP currently has seven hotels under PSA for expected gross proceeds of $77.0 million, with approximately ten additional hotels currently being marketed for sale.

“AHIP continues to make significant progress on our plan to reduce debt and high-grade the portfolio through asset sales and loan refinancings,” said Jonathan Korol, CEO. “Thus far in 2025, AHIP completed the dispositions of thirteen hotel properties for total gross proceeds of $103.8 million. AHIP currently has seven further hotel properties under purchase and sale agreements for estimated total gross proceeds of $77.0 million. In addition, AHIP is currently marketing approximately ten hotels. We continue to see strong interest in our hotels from local owners for most of the properties we have in the market.”

“Dispositions completed and under contract in 2025 have a combined Cap Rate⁽¹⁾ of 7.7% at $97,000 per key, demonstrating value beyond AHIP’s current trading levels on its remaining assets.”

“At the end of the quarter, AHIP has $26 million in cash and no debt maturing until the fourth quarter of 2026. With the asset sales and refinancings completed in 2025, AHIP has sufficient time with a stable cash position to consider alternatives to address its future obligations related to the preferred shares and convertible debentures in an orderly manner. Alternatives may include further hotel sales, or full or partial recapitalization of the Series C Shares and/or the Debentures or a combination thereof. We will be considering all opportunities to deliver value to unitholders.”

^{(1)    Non-IFRS and other financial measures. See “NON-IFRS AND OTHER FINANCIAL MEASURES” section of this news release.}

INITIATIVES TO STRENGTHEN FINANCIAL POSITION AND TO IMPROVE UNITHOLDER VALUE

The Board of Directors (the “Board”), together with management, have implemented a plan to strengthen AHIP’s financial position and to improve unitholder value. Certain initiatives, and progress made to date, are outlined below.

ADDRESSING 2026 BALANCE SHEET OBLIGATIONS

In 2024, AHIP made significant progress on its plan to reduce debt and improve the quality of its portfolio through asset sales and loan refinancings. AHIP disposed of sixteen hotel properties in 2024 for total gross proceeds of $165.2 million, which has improved the overall portfolio asset quality with pro forma increases in RevPAR, NOI margin and EBITDA per hotel, while also significantly reducing leverage. During the first three quarters of 2025, AHIP completed the disposition of twelve hotel properties for total gross proceeds of $90.8 million and two loan refinancings for total gross proceeds of $144.3 million. The net proceeds from these sales along with a portion of the proceeds from the recent loan refinancings, were used to repay the CMBS loans secured by those properties and a portion of the Portfolio Loan. These transactions significantly improved the overall duration of AHIP’s outstanding loans and increased AHIP’s cash balance.

AHIP has no secured debt maturing until the fourth quarter of 2026, with a $22.3 million CMBS loan maturing in November 2026 and a $30.6 million CMBS loan maturing in December 2026. For the November 2026 CMBS loan maturity, AHIP is currently marketing each hotel in this portfolio for sale. For the December 2026 CMBS loan maturity, three of the five hotels securing the loan in the portfolio are under contract for gross proceeds of $34.6 million, which is sufficient to repay the current loan balance of $31.4 million and, if completed, will leave two hotels unencumbered by debt at closing. Effective January 28, 2026, the dividend rate on the $50.0 million outstanding Series C Preferred Shares of U.S. Subsidiary Inc. (“Series C Shares”) increases from 9.0% to 14.0% per annum and certain other provisions under the Investor Rights Agreement will be triggered by this date, which will reduce AHIP’s flexibility if the Series C Shares have not been fully redeemed as of such date. AHIP’s 6.0% unsecured subordinated convertible debentures (the “Debentures”) mature on December 31, 2026.

With the recently completed asset sales and refinancings, AHIP has an improving unrestricted cash position and has sufficient time to consider alternatives to address these future obligations in an orderly manner. Alternatives may include further hotel sales, full or partial recapitalization of the Series C Shares and/or the Debentures or a combination thereof. Regarding potential dispositions, AHIP currently has seven hotels under contract for sale and approximately ten additional hotels being marketed. Over the remainder of 2025 and into 2026, AHIP will assess which of the marketed hotels will provide the most attractive combination of certainty, valuation and net proceeds to address these future obligations. The number of potential hotel dispositions will be dependent on, among other things, regional market factors, hotel performance, hotel size, nature and value of offers and whether any portion of the Series C Shares and/or Debentures are recapitalized.

2025 THIRD QUARTER REVIEW

FINANCIAL AND OPERATIONAL HIGHLIGHTS

For the three months ended September 30, 2025, ADR increased 6.0% to $141, and occupancy increased by 360 bps to 75.1%, compared to the three months ended September 30, 2024. Overall, improved ADR and occupancy resulted in an increase of 11.6% in RevPAR to $106, compared to the three months ended September 30, 2024. The improved performance is attributable to the disposition of hotel properties with lower-than-average portfolio RevPAR and an increase in same property RevPAR of 1.9%.

NOI and normalized NOI were $12.9 million for the three months ended September 30, 2025, a decrease of 34.3%, compared to NOI and normalized NOI of $19.6 million for the three months ended September 30, 2024. The decrease in NOI was primarily due to the disposition of the sixteen hotel properties completed in 2024 and the twelve hotel properties in the nine months ended September 30, 2025.

NOI margin was 27.1% for the three months ended September 30, 2025, a decrease of 270 bps compared to 29.8% for the same period of 2024. The decrease in NOI margin was due to higher operating expenses as a result of general cost inflation, and repair and maintenance expenses partially offset by the disposal of underperforming hotels.

Diluted FFO per unit and normalized diluted FFO per unit for the three months ended September 30, 2025, was $0.02 compared to diluted FFO per unit of $0.06 and normalized diluted FFO per unit of $0.07 for the three months ended September 30, 2024. The decrease in diluted FFO per unit and normalized diluted FFO per unit was mainly due to lower NOI as a result of sold properties and higher operating expenses on same properties, partially offset by lower corporate and administrative expenses in the current year.

As expected, RevPar on a same property basis increased in the third quarter, after a temporary decrease in the second quarter of 2025. We continue to expect growth on this measure for the remainder of the year accompanied by continued challenges with margins due to elevated costs.

SAME PROPERTY KPIs

The following table summarizes key performance indicators (“KPIs”) for the portfolio for the five most recent quarters with a comparison to the same period in the prior year on a same-property basis.

In the third quarter of 2025, same property ADR was $141, an increase of 0.7% compared to the same period in 2024. Same property occupancy increased by 70 bps to 75% in the current quarter, compared to the same period in 2024. The increase in these measures is primarily attributable to improved business travel, partially offset by a reduction in group travel, with particular strength in oil gas markets in Texas. Overall, the increase in ADR and occupancy resulted in a 1.9% increase in RevPAR.

Same property NOI decreased by 8.1% and same property NOI margin decreased by 320 bps in the current quarter, compared to the same period in 2024. The decrease in same property NOI and NOI margin was primarily driven by increases in electricity costs, sales and marketing and maintenance expenses.

LEVERAGE AND LIQUIDITY

Debt to gross book value was 48.7% as at September 30, 2025, a decrease of 60 bps compared to December 31, 2024. Debt to EBITDA as at September 30, 2025 was 9.1x, an increase of 1.1x compared to December 31, 2024. The change in debt to gross book value and debt to EBITDA ratios was driven by net proceeds from completed dispositions used to reduce outstanding debt.

As at September 30, 2025, AHIP had an unrestricted cash balance of $25.6 million compared to $27.8 million as at December 31, 2024. The reduction in cash was primarily due to net outflows from completed refinancings and debt repayment, which resulted in one property becoming unencumbered during the first quarter of 2025. As at September 30, 2025, AHIP held a restricted cash balance of $24.7 million and had an additional $23.2 million available under the Portfolio Loan for capital improvements related to the properties secured by the loan. As at November 6, 2025, AHIP had an unrestricted cash balance of approximately $32.5 million.

HOTEL DISPOSITIONS

2025 Hotel Dispositions Summary

_{⁽¹⁾ See “Non-IFRS and Other Financial Measures”
⁽²⁾ This hotel sale closed on November 4, 2025}

During the nine months ended September 30, 2025, AHIP completed the dispositions of twelve hotel properties for total gross proceeds of $90.8 million. After adjusting for an industry standard 4% FF&E reserve, the combined sales price for the twelve hotel properties sold in the nine months ended September 30, 2025, represents a blended Cap Rate of 6.9% on 2024 annual hotel EBITDA. The net proceeds from these dispositions were used to repay certain CMBS mortgage loans and added to AHIP’s cash balances. AHIP’s enterprise value as at September 30, 2025 reflects an implied Cap Rate of 9.9% on 2024 annual hotel EBITDA for the portfolio of 37 hotel properties, based on the Canadian dollar closing price of $0.40 per unit on the TSX on September 30, 2025, and converted to US dollars at a foreign exchange rate of CDN$1.39 to US$1.

As of the date of this news release, AHIP has seven hotel properties under purchase and sale agreements for estimated total gross proceeds of $77.0 million. These sales are expected to close in the fourth quarter of 2025. AHIP intends to use the net proceeds from the sale of these hotels to repay the allocated loan balance for such hotels under the CMBS and Portfolio Loans and increased AHIP’s cash balances.

CAPITAL IMPROVEMENTS

AHIP’s capital projects include hotel brand mandated property improvement plans (“PIPs”) and FF&E improvements. Select projects may generate positive return on investment through the refreshment and upgrade of guest-facing items, ensuring that each property maintains its competitive advantage in the marketplace. AHIP currently has four hotel projects in the design phase for future renovations.

AHIP’s 2025 capital expenditures are estimated at $2.4 million in PIPs and $8.0 million in FF&E improvements. PIP expenditures have been revised down from the prior estimate of $6.9 million mainly due to the planned disposition of certain hotels. PIP and FF&E expenditures will be funded through existing restricted cash and cash flow from operating activities. Actual capital spend on PIPs and FF&E was $1.2 million and $6.8 million, respectively, for the nine months ended September 30, 2025. The majority of this capital spend will be funded through restricted cash contributed by AHIP in prior periods.

SELECTED INFORMATION

SELECTED INFORMATION

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

2025 THIRD QUARTER OPERATING RESULTS

_{⁽¹⁾ See “Non-IFRS and Other Financial Measures”
⁽²⁾ NOI and NOI margin included the IFRIC 21 property taxes adjustment.}

For the three months ended September 30, 2025, ADR, occupancy and RevPAR all increased compared to the same period in the prior year. The improved performance is primarily attributable to the disposition of hotel properties with lower-than-average portfolio RevPAR. Revenue in the current quarter decreased by 27.6% compared to the same period in the prior year. The decrease in revenue was due to the disposition of sixteen hotel properties in 2024 and twelve hotel properties during the nine months ended September 30, 2025.

For the three months ended September 30, 2025, NOI decreased by 34.3% and NOI margin decreased by 270 bps, respectively, compared to the same period in the prior year. The decrease in NOI was primarily due to the disposition of sixteen hotel properties in 2024 and twelve hotel properties during the nine months ended September 30, 2025. The decrease in NOI margin was largely driven by higher operating expenses as a result of general cost inflation, repair and maintenance expenses, partially offset by disposition of hotels with lower than average NOI margin.

Income tax expense is comprised of current and deferred income taxes. Current income taxes and deferred income taxes are recognized in loss and comprehensive loss, except to the extent that it relates to a business combination, or items recognized directly in equity. Current income tax is the expected tax payable or receivable on the taxable income or loss for the period using tax rates enacted or substantively enacted by the reporting date, and any adjustment to tax payable in respect of previous years. Deferred income tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

CORPORATE UPDATES

AMENDMENT TO THE LP AGREEMENT TO FACILITATE CHANGE IN U.S. TAX STATUS

On June 26, 2025, unitholders approved an amendment to the LP Agreement to clarify that the Board has the discretion to cause the U.S. Subsidiary Inc. to cease to qualify as a real estate investment trust (“REIT”) under the United States Internal Revenue Code of 1986, as amended (the “Code”) if the Board determines doing so would be in the best interests of AHIP.

On August 6, 2025, the Board determined that it is no longer in the best interests of AHIP for the U.S. Subsidiary Inc. to continue to qualify as a REIT under the Code (the “Board Determination”). In reaching this determination, the Board considered, among other things: (i) the timing and transaction limitations on AHIP’s potential hotel dispositions that would be imposed if the U.S. Subsidiary Inc. sought to maintain its status as a REIT under the Code, and (ii) the related tax risks that could reduce available cash to AHIP, and in turn unitholders, from such hotel sales if the U.S. Subsidiary Inc. sought to maintain its status as a REIT under the Code. These risks are summarized in further detail in AHIP’s management information circular dated May 16, 2025 (a copy of which is available on SEDAR+ at www.sedarplus.com). As a result of the Board Determination, the 9.8% Unit ownership limit in the LP Agreement, which previously existed to protect the U.S. Subsidiary Inc.’s status as a REIT under the Code, no longer applies to the Units as of August 6, 2025.

The U.S. Subsidiary Inc. being treated as a taxable C corporation rather than a REIT will provide AHIP with the necessary flexibility to manage its financial obligations and efficiently pursue potential alternatives for maximizing the value of AHIP’s portfolio of assets, including asset sales or a series of asset sales. This flexibility is critical given AHIP’s recently completed and potential future dispositions (see “Addressing 2026 Balance Sheet Obligations” above).

AHIP has taken the necessary steps to cause the U.S. Subsidiary Inc. to cease to qualify as a REIT under the Code. As a result of such action, the U.S. Subsidiary Inc. will not be subject to the REIT rules under the Code in respect of its 2025 fiscal year or future years, including among other rules the requirement to distribute at least 90% of U.S. Subsidiary Inc.’s taxable income to its stockholders.

Following the Board Determination AHIP and the Investor entered into an amended and restated Investor Rights Agreement and the articles of the U.S. Subsidiary Inc. were amended, in each case, to reflect that U.S. Subsidiary Inc. will cease to qualify as a REIT under the Code. Copies of such documents are available under AHIP’s profile on SEDAR+ at www.sedarplus.com.

FINANCIAL INFORMATION

This news release should be read in conjunction with AHIP’s unaudited condensed consolidated interim financial statements, and management’s discussion and analysis for the three and nine months ended September 30, 2025 and 2024, that are available on AHIP’s website at www.ahipreit.com, and under AHIP’s profile on SEDAR+ at www.sedarplus.com.

RESTATEMENT OF PRIOR PERIODS

AHIP restated certain amounts in the 2024 comparative column in its unaudited condensed consolidated interim financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2025. The amounts included in the news release reflect the restatements retroactively. For further details, see Note 20 of the unaudited condensed consolidated interim financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2025.

Q3 2025 CONFERENCE CALL

Management will host a webcast and conference call at 10:00 a.m. Pacific time on Friday, November 7, 2025, to discuss the financial and operational results for the three and nine months ended September 30, 2025 and 2024.

To participate in the conference call, participants should register online via AHIP’s website. A dial-in and unique PIN will be provided to join the call. Participants are requested to register a minimum of 15 minutes before the start of the call. An audio webcast of the conference call may be accessed on AHIP’s website at www.ahipreit.com.

ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP’s portfolio of 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, and IHG Hotels through license agreements.

AHIP’s long-term objectives are to increase the value of its hotel properties through operating excellence, active asset management and value-adding capital expenditures and increase unitholder value and distributions to unitholders. More information is available at www.ahipreit.com.

NON-IFRS AND OTHER FINANCIAL MEASURES

Management believes the following non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures are relevant measures to monitor and evaluate AHIP’s financial and operating performance. These measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures and ratios are included to provide investors and management additional information and alternative methods for assessing AHIP’s financial and operating results and should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS.

NON-IFRS FINANCIAL MEASURES

FFO: FFO measures operating performance and is calculated in accordance with Real Property Association of Canada’s (“REALPAC”) definition. FFO – basic is calculated by adjusting income (loss) and comprehensive income (loss) for depreciation and amortization, gain or loss on disposal of property, IFRIC 21 property taxes, fair value gain or loss, impairment of property, deferred income tax, and other applicable items. FFO – diluted is calculated as FFO – basic plus the interest, accretion, and amortization on convertible debentures if convertible debentures are dilutive. The most comparable IFRS measure to FFO is income (loss) and comprehensive income (loss), for which a reconciliation is provided in this news release.

AFFO: AFFO is defined as a recurring economic earnings measure and calculated in accordance with REALPAC’s definition. AFFO – basic is calculated as FFO – basic less maintenance capital expenditures. AFFO – diluted is calculated as FFO – diluted less maintenance capital expenditures. The most comparable IFRS measure to AFFO is income (loss) and comprehensive income (loss), for which a reconciliation is provided in this news release.

Normalized FFO: calculated as FFO adjusting for non-recurring items. For the three and nine months ended September 30, 2025, normalized FFO is calculated as FFO excluding the non-recurring property damage insurance proceeds adjustment of $0.2 million recorded in the same period. For the three months ended September 30, 2024, normalized FFO is calculated as FFO excluding the non-recurring property damage insurance proceeds adjustment of $1.1 million recorded in the same period. For the nine months ended September 30, 2024, normalized FFO is calculated as FFO excluding the non-recurring property damage insurance proceeds of $1.6 million recorded in the same period.. The most comparable IFRS measure to normalized FFO is income (loss) and comprehensive income (loss), for which a reconciliation is provided in this news release.

Normalized NOI: calculated as NOI adjusting for non-recurring items. For the three and nine months ended September 30, 2025, normalized NOI was equal to NOI as there were no non-recurring items. For the three and nine months ended September 30, 2024, normalized NOI included the non-recurring insurance proceeds of $0.4 million and $0.5 million, respectively, for business interruption claims related to the weather-related damage at several hotel properties in late December 2022. The most comparable IFRS measure to normalized NOI is NOI, for which a reconciliation is provided in this news release.

Hotel EBITDA: calculated by adjusting NOI for hotel management fees. The most comparable IFRS measure to hotel EBITDA is NOI, for which a reconciliation is provided in this news release.

EBITDA: calculated by adjusting NOI for hotel management fees and general administrative expenses. The sum of hotel management fees and general administrative expenses is equal to corporate and administrative expenses in the Financial Statements. The most comparable IFRS measure to EBITDA is NOI, for which a reconciliation is provided in this news release.

Debt: calculated as the sum of term loans, revolving credit facility (where applicable) and Portfolio Loan, the face value of convertible debentures, unamortized portion of debt financing costs, and lease liabilities. The most comparable IFRS measure to debt is total liabilities, for which a reconciliation is provided in this news release.

Gross book value: calculated as the sum of total assets, accumulated depreciation and impairment on property, buildings and equipment, and accumulated amortization on intangible assets. The most comparable IFRS measure to gross book value is total assets, for which a reconciliation is provided in this news release.

Interest expense: calculated by adjusting finance costs for gain/loss on debt settlement, amortization of debt financing costs, accretion of debenture liability, amortization of debenture costs, dividends on series B preferred shares, and accretion of management fee because interest expense excludes certain non-cash accounting items and dividends on preferred shares. The most comparable IFRS measure to interest expense is finance costs, for which a reconciliation is provided in this news release.

NON-IFRS RATIOS:

FFO per unit – basic/diluted: calculated as FFO – basic/diluted divided by weighted average number of units outstanding – basic/diluted respectively for the reporting periods.

Normalized FFO per unit – basic/diluted: calculated as normalized FFO – basic/diluted divided by weighted average number of units outstanding – basic/diluted respectively for the reporting periods.

AFFO per unit – basic/diluted: calculated as AFFO – basic/diluted divided by weighted average number of units outstanding – basic/diluted respectively for the reporting periods.

NOI margin: calculated as NOI divided by total revenue.

Hotel EBITDA margin: calculated as hotel EBITDA divided by total revenue.

EBITDA margin: calculated as EBITDA divided by total revenue.

Capitalization rate (“Cap Rate”): calculated as 2024 annual hotel EBITDA, after adjusting for an industry standard 4% furniture, fixtures, and equipment (“FF&E”) reserve, divided by the actual and estimated gross proceeds of the asset dispositions.

Implied capitalization rate (“Implied Cap Rate”): calculated as 2024 annual hotel EBITDA, after adjusting for an industry standard 4% FF&E reserve, for the portfolio of 37 hotel properties divided by the enterprise value.

CAPITAL MANAGEMENT MEASURES:

Debt to gross book value: calculated as debt divided by gross book value. Debt to gross book value is a primary measure of capital management and leverage.

Debt to EBITDA: calculated as debt divided by the trailing twelve months (“TTM”) EBITDA. Debt to EBITDA measures the amount of income generated and is available to pay down debt before covering interest, taxes, depreciation, and amortization expenses.

Interest coverage ratio: calculated as TTM EBITDA divided by interest expense for the trailing twelve months. The interest coverage ratio is a measure of AHIP’s ability to service the interest requirements of its outstanding debt.

SUPPLEMENTARY FINANCIAL MEASURES:

Occupancy is a major driver of room revenue as well as food and beverage revenues. Fluctuations in occupancy are normally accompanied by fluctuations in most categories of variable hotel operating expenses, including housekeeping and other labor costs. Higher ADR increases room revenue with limited impact on hotel operating expenses. Increase in RevPAR attributable to increase in occupancy may reduce EBITDA and EBITDA margins, while increase in RevPAR attributable to increase in ADR typically result in increases in EBITDA and EBITDA margins.

Occupancy: calculated as the total number of hotel rooms sold divided by the total number of rooms available for the reporting periods. Occupancy is a metric commonly used in the hotel industry to measure the utilization of hotels’ available capacity.

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.

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

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.

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.

NON-IFRS RECONCILIATION

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

_{⁽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.}

RECONCILIATION OF FFO TO AFFO

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

DEBT TO GROSS BOOK VALUE 

DEBT 

GROSS BOOK VALUE

DEBT TO EBITDA

INTEREST COVERAGE RATIO

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

The reconciliation of NOI to normalized NOI is shown below:

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

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.

FORWARD-LOOKING INFORMATION

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.

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.

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.

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.

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.

For additional information, please contact:

Investor Relations
ir@ahipreit.com