Lynq, the Real-Time Yield-Bearing Settlement Network, Appoints Jerald David as CEO
'Lynq is on a mission to provide a settlement solution that solves for market fragmentation, mitigates counterparty credit risk, and delivers yield back to users of the platform,' said Jerald David. 'I'm honored to lead the network towards that goal. This effort would not be possible without the support of our growing consortium of institutional sponsors, and the vision, commitment, and deep expertise of our joint venture partners, Tassat and tZero, whose collaboration has laid the foundation for a truly transformative industry solution.'
As CEO of Lynq, Jerald David will apply more than 20 years of experience in financial services and over 8 years in digital assets to continue driving innovation in digital asset market infrastructure. Prior to his appointment at Lynq, he was the President of the Adviser to the first '40 Act Fund to issue shares as digital asset securities, the Arca US Treasury Fund. He started his career in digital assets as COO at Evermarkets (EMX), an exchange designed to trade traditional commodities and digital assets on one platform. Prior to that, he held leadership positions at the CME, NYMEX and DME.
'Jerald has been instrumental in the conception and development of Lynq,' said Rayne Steinberg, CEO of Arca. 'His leadership at Arca Labs, strong relationships within the industry, and deep understanding of both TradFi and digital asset securities make him the ideal person to guide Lynq through its launch and growth.'
'Jerald's conviction has been a guiding force for bringing Lynq from an idea to reality since our first meeting about the project 18 months ago,' said Thomas Restout, Group CEO of B2C2. 'We are excited for him to lead Lynq through its launch and execute our shared vision.'
The Lynq network aims to provide scalable and efficient settlement rails that address the unique challenges of the digital asset ecosystem, including market fragmentation, counterparty risk, and evolving regulatory frameworks. The Lynq consortium — which includes Avalanche, B2C2, Crypto.com, Galaxy (TSX: GLXY), U.S. Bank and Wintermute — helps ensure liquidity and mass institutional participation within the industry.
To learn more about Lynq and join the network, please visit https://lynq.network.
About Lynq
Lynq is a broker-dealer operated, real-time settlement utility powered by a tokenized treasury fund custodied at a special purpose broker-dealer. Developed by Arca Labs, Tassat, and tZERO Group, and supported by a syndicate of leading digital asset and TradFi institutions, Lynq offers clients a scalable and inclusive settlement service on a proven end-to-end platform. Built by the industry, Lynq delivers yield and transparent proof of reserves within a bankruptcy-remote architecture that minimizes counterparty risk. Lynq's patent-pending Yield-in-Transit technology enables users to maximize earned interest even during settlement operations, driving unprecedented capital efficiency. Yield is calculated by the fund administrator, Ultimus Fund Solutions. For more information, please visit https://lynq.network.
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PetroTal Announces Q2 2025 Financial and Operating Results
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - August 7, 2025) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to report its operating and financial results for the three months ended June 30, 2025. All amounts herein are in United States dollars unless stated otherwise. Selected financial and operational information outlined above should be read in conjunction with the Company's unaudited consolidated financial statements and management's discussion and analysis ("MD&A") for the three months ended June 30, 2025, which are available on SEDAR+ at and on the Company's website at Key Highlights Average Q2 2025 sales and production of 20,578 and 21,039 barrels of oil per day ("bopd"), respectively; Generated Adjusted EBITDA(1) and Free Funds Flow(1) of $44.3 million ($23.66/bbl) and $27.2 million ($14.55/bbl), respectively; Q2 2025 capital expenditures of $17.1 million, bringing H1 2025 capital expenditures to $40.7 million; Net Income of $17.5 million ($9.35/bbl) in Q2 2025, and $48.4 million ($11.46/bbl) in H1 2025; Total cash of $142.1 million, including $99.3 million of unrestricted cash; Declaring a quarterly dividend of $0.015/sh, payable to shareholders on September 12, 2025, and; Revision of 2025 production guidance to a range of 20,000 to 21,000 bopd, on capital spending of $80 million. 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The workover program, which is scheduled to run into September 2025, is expected to increase field production by a total of approximately 500-1,500 bopd (on a peak monthly average basis). PetroTal is evaluating options to secure a drilling rig to initiate the Block 131 development program, pending technical review of the workover program. Bretana Erosion Control Project PetroTal expensed $0.7 million of erosion control costs in Q2 2025, down from $1.8 million in the prior quarter. As disclosed previously, the Ucayali River at the inland port of Pucallpa was unseasonably high throughout the local wet season. The staging yard at Pucallpa, where PetroTal's contractor has been preparing equipment for the erosion control project, was flooded for approximately six weeks in March - April 2025. River levels have since declined, allowing the construction consortium to resume activity, and a number of project milestones were completed by the end of July. The main piling barge, along with the first batch of fabricated steel components, recently arrived at Bretana and is expected to commence the test piles for the first breakwater within the next two weeks. In-line with previous disclosures, PetroTal estimates the project is approximately one month behind schedule, with a targeted completion date of Q3 2026. There are no material changes to cost estimates for the project at this time. Cash and Liquidity Update PetroTal ended Q2 2025 with a total cash position of $142 million, of which $99 million was unrestricted. The increase in total cash primarily reflects the first tranche of the previously announced COFIDE loan, which was drawn on May 20, 2025. Of the $42.8 million that PetroTal carried as Restricted Cash on June 30, approximately $31.9 million was related to the escrow account of the COFIDE loan. Available cash as of June 30, 2025 amounted to $99.3 million, compared to $84.1 million at the same time last year. As previously announced, PetroTal has entered into hedge agreements for the sale of its crude oil, during periods when Brent oil pricing topped $80.00/bbl. These hedges consist of costless collars with a Brent floor price of $65.00/bbl and a ceiling of $82.50/bbl, with a cap of $102.50/bbl. As of the end of Q2 2025, the hedges covered approximately 44% of PetroTal's remaining estimated sales volumes through the end of 2025. PetroTal recorded a $5.6 million gain on these hedges as of June 30. 2025 Guidance Update Accounting for several factors discussed above, most notably lower than forecast oil prices and delays in the resumption of its development drilling program, PetroTal is updating market guidance for key 2025 financial and operational metrics. The Company now expects group production to average 20,000-21,000 bopd in 2025, down from the range of 21,000-23,000 bopd that was originally communicated on January 16, 2025. Annual adjusted EBITDA guidance, which was previously based on the assumption that Brent oil prices would average $75.00/bbl in 2025, is being reduced to a range of $170 - 185 million, from $240 - 250 million previously. Updated adjusted EBITDA guidance is based on H1 2025 actual adjusted EBITDA of $116 million, plus estimated H2 2025 adjusted EBITDA at Brent oil prices of $65.00 - 70.00/bbl. PetroTal attributes the majority of the reduction (approximately $50-55 million) in forecast adjusted EBITDA to lower oil price realizations, with the balance due to lower forecast sales volumes, partially offset by cost savings. Note that adjusted EBITDA guidance is net of approximately $30 million in expenses associated with the erosion control project, which are expected to be non-recurring. PetroTal is also reducing guidance for 2025 capital expenditures to $80 million, from $140 million previously. The reduction is primarily due to delays in resuming the development drilling program at Block 131, and to a lesser extent the deferral or cancellation of several non-essential projects due to recent weakness in oil pricing. Original guidance provided in January assumed approximately $35-40 million of capital spending at Block 131; however, the updated budget largely reflects a maintenance capital program at Blocks 95 and 131. Pending technical interpretation of the results of the workover program, and should a drilling rig arrive at the Los Angeles field before year end 2025, the Company may deploy additional capital at Block 131. Importantly, PetroTal would like to re-emphasize its commitment to a robust capital returns policy. To the extent that oil prices and its funding obligations allow, the Company will continue to prioritize a stable dividend for its shareholders. Q2 2025 Dividend Declaration PetroTal's Board of Directors has declared a quarterly cash dividend of USD$0.015 per common share, payable according to the following timeframe: Record date: 29 August 2025 Ex-Dividend date: 29 August 2025 Payment date: 12 September 2025 This dividend is with respect to Q2 2025 results and includes the recurring USD$0.015 per common share amount but no liquidity sweep this quarter due to anticipated heavier cash requirements over the next two quarters. The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada) and investors should note that the excess liquidity sweep portion of all future dividends may be subject to fluctuations up or down in accordance with the Company's return of capital policy. Shareholders outside of Canada should contact their respective brokers or registrar agents for the appropriate tax election forms regarding this dividend. Corporate Presentation Update The Company has updated its Corporate Presentation, which is available for download or viewing at Q2 2025 Webcast Link for August 7, 2025 PetroTal's management team will host a webcast to discuss Q2 2025 results on August 7, 2025 at 9am CT (Houston) and 3pm BST (London). Please see the link below to register. ABOUT PETROTAL PetroTal is a publicly traded, tri‐quoted (TSX: TAL) (AIM: PTAL) and (OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in the Bretaña Norte oil field in Peru's Block 95, where oil production was initiated in June 2018. In early 2022, PetroTal became the largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders. For further information, please see the Company's website at the Company's filed documents at or below: Camilo McAllisterExecutive Vice President and Chief Financial OfficerCmcallister@ (713) 253-4997 Manolo ZunigaPresident and Chief Executive OfficerMzuniga@ (713) 609-9101 PetroTal Investor RelationsInvestorRelations@ Celicourt CommunicationsMark Antelme / Jimmy Leapetrotal@ T : +44 (0) 20 7770 6424 Strand Hanson Limited (Nominated & Financial Adviser)Ritchie Balmer / James Spinney / Robert CollinsT: +44 (0) 207 409 3494 Stifel Nicolaus Europe Limited (Joint Broker)Callum Stewart / Simon Mensley / Ashton ClanfieldT: +44 (0) 20 7710 7600 Peel Hunt LLP (Joint Broker) Richard Crichton / David McKeown / Georgia Langoulant T: +44 (0) 20 7418 8900 READER ADVISORIES FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: oil production levels and production capacity; PetroTal's 2025 development program for drilling, completions and other activities, including Block 131 and CPF-4 at Bretana; plans and expectations with respect to the erosion control project; and PetroTal's expectations with respect to dividends and share buybacks. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective", "intend" and similar expressions. The forward-looking statements provided in this press release are based on management's current belief, based on currently available information, as to the outcome and timing of future events. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, the ability to obtain and maintain necessary permits and licenses, the ability of government groups to effectively achieve objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the impact of inflation on costs, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, future river water levels, the Company's growth strategy, general economic conditions and availability of required equipment and services. PetroTal cautions that forward-looking statements relating to PetroTal are subject to all of the risks, uncertainties and other factors, which may cause the actual results, performance, capital expenditures or achievements of the Company to differ materially from anticipated future results, performance, capital expenditures or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), business performance, legal and legislative developments including changes in tax laws and legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures, credit ratings and risks, fluctuations in interest rates and currency values, changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system, wars (including Russia's war in Ukraine and the Israeli-Hamas conflict), regulatory developments, commodity price volatility, price differentials and the actual prices received for products, exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry, changes in the financial landscape both domestically and abroad (including volatility in the stock market and financial system) and the occurrence of weather-related and other natural catastrophes. Readers are cautioned that the foregoing list of factors is not exhaustive. Please refer to the annual information form for the year ended December 31, 2023 and the management's discussion and analysis for the three months ended March 31, 2024 for additional risk factors relating to PetroTal, which can be accessed either on PetroTal's website at or under the Company's profile on The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). SHORT TERM RESULTS: References in this press release to peak rates, initial production rates, current production rates, 30-day production rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of PetroTal. The Company cautions that such results should be considered to be preliminary. FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations and production results, 2024 drilling program and budget, well investment payback, cash position, liquidity and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was approved by management as of the date of this press release and was included for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in PetroTal's guidance. The Company's actual results may differ materially from these estimates. 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In the first half of 2025, AHIP completed the disposition of 11 hotel properties for total gross proceeds of $73.4 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. Of the 9 hotel properties under purchase sale and agreements at the end of the first quarter of 2025, AHIP completed the disposition of 8 hotel properties for total gross proceeds of $32.2 million. The net proceeds from these sales were used to repay a CMBS loan secured by these properties. The remaining hotel property under a purchase and sale agreement is expected to close in the third quarter of 2025. 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. Effective January 28, 2026, the dividend rate on the $50.0 million outstanding Series C Preferred Shares of U.S. REIT ('Series C Shares') increases from 9.0% to 14.0% per annum and certain other provisions under the Investor Rights Agreement with HCI-BGO Victoria JV LP (the 'Investor') will be triggered on such date, which will reduce AHIP's operational 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') are due December 31, 2026. With the recently completed asset sales and refinancings, AHIP is in a stable 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 approximately 20 additional hotels being marketed. Over the remainder of 2025, 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 the Debentures are recapitalized. 2025 SECOND QUARTER REVIEW FINANCIAL AND OPERATIONAL HIGHLIGHTS For the three months ended June 30, 2025, ADR increased 2.2% to $140, and occupancy increased by 30 bps to 75.7%, compared to the three months ended June 30, 2024. Overall, improved ADR and occupancy resulted in an increase of 2.9% in RevPAR to $106, compared to the three months ended June 30, 2024. The improved performance is primarily attributable to the disposition of hotel properties with lower-than-average portfolio RevPAR. NOI and normalized NOI were $17.4 million for the three months ended June 30, 2025, a decrease of 30.5%, compared to NOI and normalized NOI of $25.1 million for the three months ended June 30, 2024. The decrease in NOI was primarily due to the disposition of the 16 hotel properties completed in 2024 and the 11 hotel properties in the six months ended June 30, 2025. NOI margin was 34.1% for the three months ended June 30, 2025, a decrease of 100 bps compared to 35.1% for the same period of 2024. The decrease in NOI margin was due to higher operating expenses as a result of general cost inflation, utilities and repair and maintenance expenses offset by the disposal of underperforming hotels in 2024. Diluted FFO per unit and normalized diluted FFO per unit for the three months ended June 30, 2025, was $0.06 compared to diluted FFO per unit of $0.12 and normalized diluted FFO per unit of $0.10 for the three months ended June 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. While RevPar on a same property basis declined in the second quarter, management expects this measure to improve on a year over year basis for the balance of the year. This will be accompanied by continued challenges with margins due to elevated costs. In July 2025, ADR was $143, the same as July 2024. Occupancy increased 180bps to 76.8% in July 2025, compared to 75% for the same period of 2024. RevPAR increased to $110 in July 2025, compared to $107 for the same period of 2024. 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. KPIs Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 ADR $140 $139 $134 $140 $141 Change compared to same period in prior year - % increase/(decrease) (0.7%) (0.6%) 1.0% 1.5% 2.4% Occupancy 76.4% 69.7% 70.5% 74.6% 76.7% Change compared to same period in prior year - bps increase/(decrease) (30) 218 256 71 126 RevPAR $107 $97 $94 $104 $108 Change compared to same period in prior year - % increase/(decrease) (0.9%) 2.6% 4.8% 2.4% 4.1% NOI $ 15,073 $ 12,466 $ 11,223 $ 15,396 $ 15,927 Change compared to same period in prior year - % increase/(decrease) (5.4%) (2.3%) (2.2%) 0.6% 1.3% NOI Margin 32.9% 28.9% 26.0% 32.5% 34.4% Change compared to same period in prior year - bps increase/(decrease) (150 ) (105) (186) (61) (87) In the second quarter of 2025, same property ADR was $140, a decrease of 0.7% compared to the same period in 2024. Same property occupancy decreased by 30 bps to 76.4% in the current quarter, compared to the same period in 2024. The decrease in occupancy is primarily attributable to weaker group and government demand, along with localized challenges. Overall, the decrease in ADR and occupancy resulted in a 0.9% decrease in RevPAR. Same property NOI decreased by 5.4% and same property NOI margin decreased by 150 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 a decline in government demand and operational disruptions such as high general manager turnover and elevated labour costs. LEVERAGE AND LIQUIDITY KPIs Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Restated Restated Debt-to-GBV 48.7% 48.7% 49.3% 50.0% 52.2% Debt-to-EBITDA 8.1x 7.9x 8.0x 9.1x 9.7x Debt to gross book value was 48.7% as at June 30, 2025, a decrease of 60 bps compared to December 31, 2024. Debt to EBITDA as at June 30, 2025 was 8.1x, an increase of 0.1x 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 June 30, 2025, AHIP had an unrestricted cash balance of $18.6 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 June 30, 2025, AHIP held a restricted cash balance of $25.4 million and had an additional $24.7 million available under the Portfolio Loan for capital improvements related to the properties secured by the loan. HOTEL DISPOSITIONS 2025 Hotel Dispositions Summary Hotel Location Gross Proceeds (millions of dollars) Keys Gross proceeds per key Cap Rate (1)on 2024 annual hotel EBITDA Actual/Estimated Closing Date Completed Dispositions: Homewood Suites Allentown Bethlehem Airport Bethlehem, Pennsylvania $11.7 113 $104,000 7.5% March 27, 2025 Residence Inn Arundel Mills BWI Airport Hanover, Maryland $18.0 131 $137,000 8.5% March 27, 2025 TownePlace Suites Arundel Mills BWI Airport Hanover, Maryland $11.5 109 $106,000 3.9% March 27, 2025 Total completed in Q1 2025 $41.2 353 $117,000 6.9% Hampton Inn Chickasha Chickasha, Oklahoma $4.0 63 $63,000 5.2% May 22, 2025 Holiday Inn Express & Suites Chickasha Chickasha, Oklahoma $4.4 62 $71,000 4.3% May 22, 2025 Holiday Inn Express & Suites Dubuque West Dubuque, Iowa $3.0 87 $34,000 16.6% May 22, 2025 Holiday Inn Express & Suites Nevada Nevada, Missouri $5.2 68 $76,000 10.1% May 22, 2025 Holiday Inn Express & Suites Mattoon Mattoon, Illinois $4.0 69 $58,000 9.8% May 22, 2025 Holiday Inn Express & Suites Emporia Emporia, Kansas $5.9 68 $87,000 11.4% May 22, 2025 Holiday Inn Express & Suites Jacksonville South Jacksonville, Illinois $3.9 69 $57,000 (0.4%) May 22, 2025 Holiday Inn Express & Suites Oklahoma City Bethany Bethany, Oklahoma $1.8 69 $28,000 (12.7%) June 20, 2025 Total completed in Q2 2025 $32.2 555 $58,000 6.9% Dispositions Under Contract: Homewood Suites Kalamazoo Portage Portage, Michigan $17.4 97 $179,000 6.9% Q3 2025 Fairfield Inn & Suites Asheboro Asheboro, North Carolina $7.8 87 $90,000 11.40% Q4 2025 Total under contract $25.2 184 $137,000 8.3% Total completed and under contract $98.6 1,092 $90,000 7.3% (1) See 'Non-IFRS and Other Financial Measures' During the six months ended June 30, 2025, AHIP completed the dispositions of 11 hotel properties for total gross proceeds of $73.4 million. After adjusting for an industry standard 4% FF&E reserve, the combined sales price for the 11 hotel properties sold in the first half of 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. AHIP's enterprise value as at June 30, 2025 reflects an implied Cap Rate of 9.8% on 2024 annual hotel EBITDA for the portfolio of 38 hotel properties, based on the Canadian dollar closing price of $0.45 per unit on the TSX on June 30, 2025, and converted to US dollars at a foreign exchange rate of CDN$1.37 to US$1. As of the date of this news release, AHIP has two hotel properties under purchase and sale agreements for estimated total gross proceeds of $25.2 million. These sales are expected to close in the third and fourth quarter of 2025, respectively. AHIP intends to use the net proceeds from the sale of these hotels to repay the allocated loan balance for such hotels under the Portfolio Loan. 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 $1.9 million in PIPs and $7.5 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 $0.3 million and $4.6 million, respectively, for the six months ended June 30, 2025. The majority of this capital spend will be funded through restricted cash contributed by AHIP in prior periods. SELECTED INFORMATION Three months ended June 30 Six months ended June 30 (thousands of dollars, except per Unit amounts) 2025 2024(restated) 2025 2024(restated) Revenue 51,145 71,521 99,760 136,781 Income from operating activities 11,841 19,345 18,525 27,074 Loss and comprehensive loss (7,406) (2,138) (29,776) (11,668) NOI(2) 17,435 25,101 30,118 41,380 NOI Margin(2) 34.1% 35.1% 30.2% 30.3% Hotel EBITDA (1) 16,204 23,541 27,706 38,303 Hotel EBITDA Margin (1) 31.7% 32.9% 27.8% 28.0% EBITDA (1) 13,919 19,396 23,049 32,729 EBITDA Margin (1) 27.2% 27.1% 23.1% 23.9% Cashflow from operating activities 1,943 10,644 2,992 10,687 Dividends declared to Series C holders 1,172 1,138 2,332 2,237 FFO diluted (1) 5,193 10,887 3,404 12,309 FFO per unit - diluted (1) 0.06 0.12 0.04 0.15 Normalized FFO per unit - diluted (1) 0.06 0.10 0.04 0.12 AFFO diluted (1) 2,990 9,058 (1,425) 7,478 AFFO per unit - diluted (1) 0.04 0.10 (0.02) 0.09 (1) See 'Non-IFRS and Other Financial Measures'(2) NOI and NOI margin included the IFRIC 21 property taxes adjustment. SELECTED INFORMATION (thousands of dollars) June 30, 2025 December 31, 2024 Total assets 575,040 685,110 Total liabilities 425,716 501,091 Total non-current liabilities 391,909 275,501 Term loans, revolving credit facility and Portfolio Loan 342,316 384,809 Debt to gross book value (1) 48.7% 49.3% Debt to EBITDA (times) (1) 8.1 8.0 Interest coverage ratio (times) (1) 1.6 1.7 Term loans, revolving credit facility and Portfolio Loan: Weighted average interest rate 6.43% 5.72% Weighted average term to maturity (years) 2.0 1.7 Number of rooms 4,537 5,445 Number of properties 38 49 Number of restaurants 14 14 (1) See 'Non-IFRS and Other Financial Measures' 2025 SECOND QUARTER OPERATING RESULTS Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 (restated) 2025 2024 (restated) ADR (1) 140 137 138 134 Occupancy (1) 75.7% 75.4% 71.6% 70.7% RevPAR (1) 106 103 99 95 Revenue 51,145 71,521 99,760 136,781 Operating expenses 26,679 36,883 53,280 72,501 Energy 1,861 2,659 4,547 5,569 Property maintenance 2,936 3,804 6,209 7,884 Property taxes, insurance and ground lease 2,234 3,074 5,606 9,447 Total expenses 33,710 46,420 69,642 95,401 NOI(2) 17,435 25,101 30,118 41,380 NOI Margin %(2) 34.1% 35.1% 30.2% 30.3% Depreciation and amortization 5,594 5,756 11,593 14,306 Income from operating activities 11,841 19,345 18,525 27,074 Other expenses 13,857 20,521 43,234 39,513 Current income tax expense (recovery) 1 (51) 29 36 Deferred income tax expense (recovery) 5,389 1,013 5,038 (807) Loss and comprehensive loss (7,406) (2,138) (29,776) (11,668) (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 June 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 28.5% compared to the same period in the prior year. The decrease in revenue was due to the disposition of 16 hotel properties in 2024 and 11 hotel properties during the six months ended June 30, 2025. For the three months ended June 30, 2025, NOI decreased by 30.5% and NOI margin decreased by 100 bps, respectively, compared to the same period in the prior year. The decrease in NOI was primarily due to the disposition of 16 hotel properties in 2024 and 11 hotel properties during the six months ended June 30, 2025. The decrease in NOI margin was largely driven by higher operating expenses as a result of general cost inflation, utilities and 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 CHANGE IN AUDITOR At the request of AHIP, KPMG LLP ('KPMG') has provided notice of its resignation as auditor of AHIP effective August 7, 2025. In conjunction therewith, the Audit Committee of the Board completed a comprehensive request for proposal process for the 2025 external audit engagement. The Board on the recommendation of the Audit Committee, selected MNP LLP ('MNP') to replace KPMG as its external auditor for fiscal 2025. The decision was based on careful consideration of the qualifications of MNP's audit team, staffing model, technology and independence. MNP will commence a transition process during the remainder of the year ending December 31, 2025 to ensure an orderly transfer. There were no reservations in KPMG's previously issued audit reports. In accordance with National Instrument 51-102 – Continuous Disclosure Obligations, AHIP will file a Change of Auditor Notice (the "Notice") on SEDAR+ together with letters from both the former auditor and successor auditor in due course. AMENDMENT TO THE LP AGREEMENT TO FACILITATE CHANGE IN U.S. TAX STATUS On June 26, 2025, unitholders approved an amendment to AHIP's Amended and Restated Limited Partnership Agreement (the 'LP Agreement') to clarify that the Board has the discretion to cause AHIP's direct subsidiary American Hotel Income Properties REIT Inc. ('U.S. REIT') 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. REIT 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. REIT 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. REIT 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 The U.S. REIT 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 is in the process of marketing approximately 20 hotel properties as part of its strategy to manage its future financial obligations (see 'Addressing 2026 Balance Sheet Obligations' above). The Board intends to cause the U.S. REIT to take such action as is necessary prior to the end of 2025 to cause the U.S. REIT to cease to qualify as a REIT under the Code. As a result of such action, the U.S. REIT 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. REIT's taxable income to its stockholders. 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. REIT's status as a REIT under the Code, no longer applies to the Units as of August 6, 2025. AHIP obtained the consent of the Investor under the Investor Rights Agreement prior to making the Board Determination. In connection with the Board Determination, AHIP and the Investor will enter into an amended and restated Investor Rights Agreement and the articles of the U.S. REIT will be amended, in each case, to reflect that U.S. REIT will cease to qualify as a REIT under the Code. A copy of the amended and restated investor rights agreement will be posted under AHIP's profile on SEDAR+ at in due course. 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 six months ended June 30, 2025 and 2024, that are available on AHIP's website at and under AHIP's profile on SEDAR+ at 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 six months ended June 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 six months ended June 30, 2025. Q2 2025 CONFERENCE CALL Management will host a webcast and conference call at 10:00 a.m. Pacific time on Thursday, August 7, 2025, to discuss the financial and operational results for the three and six months ended June 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 ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP American Hotel Income Properties REIT LP (TSX: TSX: HOT.U, TSX: 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 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 six months ended June 30, 2025, normalized FFO was equal to FFO as there were no non-recurring items. For the three months ended June 30, 2024, normalized FFO is calculated as FFO excluding the non-recurring insurance proceeds of $1.6 million for property damage incurred in the second quarter of 2024. For the six months ended June 30, 2024, normalized FFO is calculated as FFO excluding the non-recurring insurance proceeds of $2.7 million for property damage. 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 six months ended June 30, 2025, normalized NOI was equal to NOI as there were no non-recurring items. For the three and six months ended June 30, 2024, normalized NOI included the non-recurring insurance proceeds of nil and $0.1 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 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 38 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 Q2 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 Q2 2025 and Q2 2024, the same property ADR, occupancy, RevPAR and NOI margin calculations excluded 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 June 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 June 30, 2025, converted to US dollars at a foreign exchange rate of CDN$1.37 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 June 30, 2025 Statement of Financial Position. NON-IFRS RECONCILIATION INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) TO FFO Three months ended June 30 Six months ended June 30 (thousands of dollars, except per unit amounts) 2025 2024(restated) 2025 2024(restated) Loss and comprehensive loss (7,406) (2,138) (29,776) (11,668) Adjustments: Income attributable to non-controlling interest (1,172) (1,138) (2,332) (2,237) Depreciation and amortization 5,594 5,756 11,593 14,306 Impairment of cash-generating units - 5,070 14,790 9,173 Write-off of property, building and equipment - 2,220 4 2,220 Loss (gain) on sale of properties 3,480 - 4,858 (242) IFRIC 21 property taxes adjustment (780) (1,388) (858) (496) Change in fair value of financial instruments 88 (18) 87 (138) Gain on convertible debenture conversion - (245) - (245) Deferred income tax expense (recovery) 5,389 1,013 5,038 (807) Loss on deconsolidation of subsidiary - 627 - 2,443 FFO basic(1) 5,193 9,759 3,404 12,309 Interest, accretion and amortization on convertible debentures - 1,128 - - FFO diluted(1) 5,193 10,887 3,404 12,309 FFO per unit – basic(1) 0.07 0.12 0.04 0.15 FFO per unit – diluted(1) 0.06 0.12 0.04 0.15 Non-recurring items: Other income - (1,587) - (2,689) Measurements excluding non-recurring items: Normalized FFO diluted(1) 5,193 9,300 3,404 9,620 Normalized FFO per unit – diluted(1) 0.06 0.10 0.04 0.12 Weighted average number of units outstanding: Basic (000's) 78,030 79,186 78,384 79,115 Diluted (000's)(2) 80,567 91,598 80,922 80,723 (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 six months ended June 30, 2025, and the six months ended June 30, 2024, excluded the convertible debentures because they were anti-dilutive, while the calculation for the three months ended June 30, 2024, included the convertible debentures because they were dilutive. RECONCILIATION OF FFO TO AFFO Three months ended June 30 Six months ended June 30 (thousands of dollars, except per Unit amounts) 2025 2024(restated) 2025 2024(restated) FFO basic (1) 5,193 9,759 3,404 12,309 FFO diluted (1) 5,193 10,887 3,404 12,309 Maintenance capital expenditures (2,203) (1,829) (4,829) (4,831) AFFO basic (1) 2,990 7,930 (1,425) 7,478 AFFO diluted (1) 2,990 9,058 (1,425) 7,478 AFFO per unit - basic (1) 0.04 0.10 (0.02) 0.09 AFFO per unit - diluted (1) 0.04 0.10 (0.02) 0.09 Measurements excluding non-recurring items: AFFO diluted (1) 2,990 7,471 (1,425) 4,789 AFFO per unit - diluted (1) 0.04 0.08 (0.02) 0.06 (1) See 'Non-IFRS and Other Financial Measures' DEBT TO GROSS BOOK VALUE (thousands of dollars) June 30, 2025 December 31, 2024 Debt 404,967 476,552 Gross Book Value 831,348 967,433 Debt-to-Gross Book Value 48.7% 49.3% DEBT (thousands of dollars) June 30, 2025 December 31, 2024 Term loans, revolving credit facility and Portfolio Loan 350,190 423,949 2026 debentures (at face value) 49,730 49,730 Unamortized portion of debt financing costs 4,309 2,177 Lease liabilities 738 696 Debt 404,967 476,552 GROSS BOOK VALUE (thousands of dollars) June 30, 2025 December 31, 2024 Total assets 575,040 685,110 Accumulated depreciation and impairment on property, buildings and equipment 250,048 275,424 Accumulated amortization on intangible assets 6,260 6,899 Gross Book Value 831,348 967,433 DEBT TO EBITDA (thousands of dollars) June 30, 2025 December 31, 2024 Debt 404,967 476,552 EBITDA (trailing twelve months) 49,776 59,456 Debt-to-EBITDA (times) 8.1x 8.0x INTEREST COVERAGE RATIO (thousands of dollars) June 30, 2025 December 31, 2024 EBITDA (trailing twelve months) 49,776 59,456 Interest expense (trailing twelve months) 30,238 35,572 Interest Coverage Ratio (times) 1.6x 1.7x The reconciliation of NOI to hotel EBITDA and EBITDA is shown below: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024(restated) 2025 2024(restated) NOI 17,435 25,101 30,118 41,380 Management fees (1,231) (1,560) (2,412) (3,077) Hotel EBITDA 16,204 23,541 27,706 38,303 General administrative expenses (1,505) (2,757) (3,799) (5,078) EBITDA 14,699 20,784 23,907 33,225 The reconciliation of NOI to normalized NOI is shown below: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024(restated) 2025 2024(restated) NOI 17,435 25,101 30,118 41,380 Business interruption insurance proceeds - - - 92 Normalized NOI 17,435 25,101 30,118 41,472 The reconciliation of finance costs to interest expense is shown below: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024(restated) 2025 2024(restated) Finance costs 7,627 10,212 17,417 21,057 Amortization of debt financing costs (482) (653) (1,252) (1,314) Accretion of debenture liability (284) (260) (570) (523) Amortization of debenture costs (126) (120) (255) (233) Debt defeasance (13) - (1,017) - Loss on debt settlement (13) - (683) (11) Interest Expense 6,709 9,179 13,640 18,976 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 six months ended June 30, 2025 and 2024, available on AHIP's website at and under AHIP's profile on SEDAR+ at FORWARD-LOOKING INFORMATION Certain statements in this news release may constitute '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, supply chain 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 strategic initiatives and the intended outcomes thereof, including strengthening AHIP's financial position and preserving 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 20 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 having any debt maturities until the fourth quarter of 2026; AHIP's intention to cause the U.S. REIT to cease to qualify as a REIT under the Code in respect of the U.S. REIT's 2025 fiscal year and instead be treated as taxable C corporation, and the anticipated benefits and risks to AHIP of doing so; AHIP entering into an amended and restated Investor Rights Agreement with the Investor and the amendment of U.S. REIT's articles to reflect that the U.S. REIT will cease to qualify as a REIT under the Code; KPMG's resignation as auditor of AHIP effective August 7, 2025, MNP commencing a transition process to ensure an orderly transfer and certain filings to be made by AHIP on SEDAR+ in connection with the change in AHIP's auditor to MNP; the key liquidity risks facing AHIP and its planned strategies for dealing with same; 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, labor shortages, and supply chain disruptions will negatively impact the U.S. economy, U.S. hotel industry and AHIP's business; the U.S. will not enter an economic recession; 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 raising 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. REIT to cease to qualify as a REIT under the Code in respect of the U.S. REIT's 2025 fiscal year and instead be treated as taxable C corporation, and AHIP will realize the anticipated benefits of doing so; AHIP will enter into an amended and restated Investor Rights Agreement with the Investor and will amend the U.S. REIT's articles to reflect that the U.S. REIT will cease to qualify as a REIT under the Code on the terms currently contemplated by AHIP; AHIP will continue to have good relationships with its Brand partners; 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'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 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, labor shortages, supply chain disruptions 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 raising 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's intention to cause the U.S. REIT to cease to qualify as a REIT under the Code in respect of the U.S. REIT's 2025 fiscal year and instead be treated as taxable C corporation, may not be successful and the benefits thereof may be less than anticipated; AHIP may not enter into an amended and restated Investor Rights Agreement with the Investor or amend the U.S. REIT's articles on the terms currently contemplated; AHIP may incur costs related to the change in its auditor, which costs may be greater 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 are expected to be refinanced at significantly higher interest rates; 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 annual information form, a copy of which is available on SEDAR+ at 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 Relationsir@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
