VANCOUVER — American Hotel Income Properties REIT LP is suspending its cash payouts to investors and moving to cut costs in an effort to preserve cash during the disruption caused by COVID-19.
The real estate trust says all of its 79 hotels are open and accommodating guests, but on a reduced basis.
The REIT says it will pay its March distribution of 3.8 cents US per unit and then suspend monthly distributions until economic conditions improve and COVID-19 issues abate.
AHIP has also implemented cost saving measures including reducing staffing levels and consolidating hotel personnel where clusters of hotels are located close to each other.
It is also making changes to its food and beverage operations and deferring capital spending.
AHIP holds a portfolio of 79 hotels in the United States that operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through licence agreements.
This report by The Canadian Press was first published March 20, 2020.
Companies in this story: (TSX:HOT.UN)
The Canadian Press