American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures T.HOT.DB.V

Alternate Symbol(s): AHOTF | T.HOT.UN

Real Estate REIT - Diversified

American Hotel Income Properties REIT LP is a trust that invests in hotel real estate properties. The company's primary business is owning Premium Branded hotels, which have franchise agreements with international hotel brands including Marriott, Hilton, and IHG. It generates revenue from the room, food, beverage, and other revenue. The other revenue is comprised of conference room rentals, parking revenues, and other incidental income.

TSX:HOT.DB.V - Post by User

American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures

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Comment by borne2runon Nov 08, 2018 6:06pm

129 Views

Post# 28947076

RE:RE:RBC Comments Today

The problem is that the REIT overpaid for the hotels they acquired in 2016 and 2017. It seems that nearly all the properties require renovations - i.e they were "tired looking" when purchased. Knowing that the hotels needed work, the REIT should have negotiated better deals or walked away.

Maybe the purchase prices were fair, but the net income generated by these assets is insufficient to maintain a low payout ratio. Cap rates were too low. Investors now face two risks - executional risk of the hotel operations and managerial risks associated with the renovations. These guys need to bring their "A" game every day for the next year.

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