Response from Jamie Kokoska Invester relations AHIPThank you for your email. These are definitely unprecedented times, and our stock has certainly been pressured alongside all other hotel and airline stocks.
All 79 of our hotels are open and attending to guests. Business levels have reduced due to the health and social distancing mandates enacted in the US this week. As a result we have developed property level expense savings plans for each of our 79 properties with our hotel manager. This includes significantly reduced staffing, increased use of management for hotel services (non-union who have to be there regardless), only on-request housekeeping (which is also a safety measure), and compressing occupied guestrooms to specific wings/floors in the hotel to enhance the efficiency of our operations and energy costs. In addition, some services were mandated closed – such as all food and beverage facilities and all buffet breakfast offerings, due to regional health mandates. Wherever possible, we are also consolidating and centralizing job functions where clusters of hotels exist.
As for liquidity, as of Dec. 31st we had $17.8 million of unrestricted cash, and $28.8 million of restricted cash (which may be accessible as the hotel brands are loosening their capex requirements in this environment). We also have access to an additional $60 million on our line of credit, should we need to access it.
I hope this answers your question.
Thanks
Jamie
Jamie Kokoska I Director, Investor Relations AHIP Management Ltd.
800 - 925 West Georgia Street, Vancouver BC V6C 3L2 Canada
T: 604.670.6242