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

RE:RE:RE:RE:RE:All the momentum has evaporated

[Capharnaum]

They were unlucky with timing. For years, they spent money (and got lower revenue) redevelopping properties, then they finallly commit to sell their basic hotels and move into premium when the redevelopping was getting to the end just as covid hit us.

So, they never really enjoyed the full potential of their hotels revenues and hit a crisis (covid) which drained even more capital and forced them into adding an investment partner (basically, into diluting current shareholders and loading a bit more debt.

Other than the bad timing of covid, I think they could have covered their distribution for the first time last year. I think that's why their numbers are fairly good compared to the industry so far. Yet, they have to be careful since they need to reimburse the higher debt level and the larger investing base means lower cashflow per share (covid effects).