AMERICAN HOTEL INCOME PROPERTIES REIT LP Reports Strong Q 2 2022 Results with 19.0% Growth in Revenue and 28.6% Growth in Diluted Funds from Operations ("FFO") Per Unit.

VANCOUVER, BC: American Hotel Income Properties REIT LP ("AHIP", or the "Company") (TSX: HOT.UN) (TSX: HOT.U) (TSX: HOT.DB.V), today announced its financial results for the three and six months ended June 30, 2022.

All amounts presented in this news release are in United States dollars ("U.S. dollars") unless otherwise indicated.

"We are pleased with the performance of our premium branded select-service hotel portfolio this quarter." commented Jonathan Korol, CEO. "Our team's ability to optimize daily rates in an inflationary environment resulted in the achievement of our highest quarterly average daily rate ("ADR")(1) levels in the history of the Company, while our fixed rate debt structure allowed us to meet our internal expectations for cash flow generation."

2022 SECOND QUARTER HIGHLIGHTS

Revenue increased 19.0% to $75.6 million, compared to $63.6 million in the same period of 2021.

Diluted FFO per unit(1) increased 28.6% to $0.18, compared to $0.14 in the same period of 2021.

ADR increased to $125, compared to $117 in the first quarter of 2022, and $109 in the same period of 2021.

Occupancy(1) increased to 72.8%, compared to 63.7% in the first quarter of 2022, and 70.0% in the same period of 2021.

Debt to gross book value(1) decreased to 53.6% as at June 30, 2022, compared to 54.1% as at December 31, 2021 and 55.4% as at June 30, 2021.

Weighted average interest rate for term loans and credit facility was 4.24% as at June 30, 2022, a reduction of 28 bps compared to 4.52% as at December 31, 2021.

Total available liquidity increased by $6.9 million to $51.1 million as at June 30, 2022, compared to $44.2 million as at December 31, 2021, plus an additional restricted cash balance of $38.4 million as at June 30, 2022.

Declared and paid monthly U.S. dollar distributions of $0.015 per unit in each month since February 2022.

Cash flow from operating activities was $14.7 million for the second quarter of 2022, an increase of $9.3 million compared to the same period of 2021.

Net and comprehensive income was $13.7 million for the second quarter of 2022, an increase of $13.2 million compared to the same period of 2021.

"This quarter we achieved our highest quarterly ADR, occupancy and RevPAR(1) since the onset of the pandemic. Quarterly RevPAR resumed its upward trend, finishing at 94% of 2019 levels." Mr. Korol added: "This was not only driven by ADR, but also increasing demand from our leisure guests as well as the gradual return of business and group travellers, as demonstrated by the tremendous performance of our Embassy Suites portfolio during the quarter."

"AHIP is not immune to the challenging operating environment, which includes cost inflation, labor shortages and supply chain disruptions. We are continuing to focus on revenue management, hiring more in-house labor, reducing turnover and improving housekeeping productivity. We remain well positioned to navigate the current macroeconomy given the lean operating model of our select-service portfolio as well as the diversified demand profile of our guests." commented Mr. Korol. "This was on display throughout the pandemic, as...