Canadian Halal Investor

TSX Shariah screener · September 2026

Is American Hotel Income Properties (HOT.UN) Halal?

FAIL

American Hotel Income Properties REIT LP · TSX: HOT.UN · Real Estate

The short answer

American Hotel Income Properties (HOT.UN) is a FAIL. The business gate passes: it owns premium-branded select-service hotels in the US (Marriott, Hilton and IHG brands), with revenue from rooms, food and beverages - no disclosed prohibited primary line. The income gate passes: finance income of US$43,000 in Q2 2026 is about 0.1% of US$31.1M revenue, under the ~5% ceiling. The debt gate fails: term loans, the Portfolio Loan and Portfolio Loan II totalled US$155.7M at June 30, 2026 - well over 300% of the ~C$40.7M September 2026 market cap, against a ~33% ceiling - with convertible debentures on top. No public Zoya, Musaffa or ShariaPortfolio rating was found for HOT.UN as of September 2026. As with every screener here, this is a rules-based screening of published figures, not a religious ruling - consult a qualified scholar for personal guidance.

Gate 1 — Business activity: PASS

American Hotel Income Properties REIT LP (AHIP) is a Vancouver-based limited partnership that invests in hotel real estate properties across the United States, operating premium-branded select-service hotels under franchise brands affiliated with Marriott, Hilton and IHG. Revenue comes from rooms, food, beverages and other sources such as conference room rentals and parking. At June 30, 2026 it owned 23 properties with 2,414 rooms after a wave of dispositions (18 hotels sold in 2025, 8 more in H1 2026). There are no disclosed alcohol, tobacco, gambling, conventional finance or insurance, pork, adult entertainment, weapons or cannabis primary lines. The business-activity gate passes. Facts only, no fatwa.

Gate 2 — Debt: FAIL

At June 30, 2026, term loans, the Portfolio Loan and Portfolio Loan II totalled US$155.7M (weighted-average interest rate 7.56%), the debt-to-gross-book-value ratio was 51.1%, and convertible debentures (HOT.DB.V) remained outstanding. Against a market capitalization of about C$40.7M (C$0.33, the September 30, 2026 market price), the US$155.7M of disclosed debt alone is well over 300% of market cap - against a ~33% ceiling. A board-led strategic review is underway aimed in part at reducing debt.

Gate 3 — Non-compliant income: PASS

The Q2 2026 MD&A separately discloses finance income of US$43,000 for the quarter ended June 30, 2026 (US$236,000 for the first six months), against finance costs of US$7.2M. Against Q2 revenue of US$31,099,000, finance income is about 0.1% of revenue - under the ~5% ceiling.

Key figures used

Frequently asked questions

Is American Hotel Income Properties (HOT.UN) halal?

Our September 2026 screen gives American Hotel Income Properties REIT LP (TSX: HOT.UN) a FAIL. The business gate passes: it owns premium-branded select-service hotels in the US (Marriott, Hilton and IHG brands), with revenue from rooms, food and beverages - no disclosed prohibited primary line. The income gate passes: finance income of US$43,000 in Q2 2026 is about 0.1% of US$31.1M revenue, under the ~5% ceiling. The debt gate fails: term loans, the Portfolio Loan and Portfolio Loan II totalled US$155.7M at June 30, 2026 - more than 300% of the ~C$40.7M September 2026 market cap, against a ~33% ceiling - with convertible debentures on top. No public Zoya, Musaffa or ShariaPortfolio rating was found for HOT.UN as of September 2026. This is a rules-based screening of published figures, not a religious ruling.

What business is American Hotel Income Properties in?

American Hotel Income Properties REIT LP (AHIP) is a Vancouver-based limited partnership that invests in hotel real estate properties across the United States. Its portfolio of premium-branded, select-service hotels operates under franchise brands affiliated with Marriott, Hilton and IHG, and it generates revenue from rooms, food, beverages and other sources such as conference room rentals and parking. At June 30, 2026 it owned 23 properties with 2,414 rooms after a wave of dispositions. Its units trade on the Toronto Stock Exchange under HOT.UN (C$), HOT.U (US$) and its convertible debentures trade as HOT.DB.V. There are no disclosed alcohol, tobacco, gambling, conventional finance or insurance, pork, adult entertainment, weapons or cannabis primary lines, so the business gate passes under this screen's AAOIFI-style criteria.

How leveraged is American Hotel Income Properties on the debt gate?

At June 30, 2026, term loans, the Portfolio Loan and Portfolio Loan II totalled US$155.7M (weighted-average interest rate 7.56%), with a debt-to-gross-book-value ratio of 51.1% and convertible debentures outstanding on top. Against a market capitalization of about C$40.7M (C$0.33 on September 30, 2026), US$155.7M of disclosed debt alone is well over 300% of market cap - against a ~33% ceiling - so the debt gate fails by a wide margin. AHIP is conducting a board-led strategic review aimed in part at reducing debt.

How much interest income does American Hotel Income Properties earn?

The Q2 2026 MD&A separately discloses finance income of US$43,000 for the quarter ended June 30, 2026 (US$236,000 for the first six months), against finance costs of US$7.2M. Against Q2 revenue of US$31,099,000, finance income is about 0.1% of revenue - under the ~5% ceiling - so the non-compliant income gate passes. The debt gate remains the reason for the overall FAIL.

What do Zoya, Musaffa or ShariaPortfolio say about HOT.UN?

No public Zoya, Musaffa or ShariaPortfolio rating for HOT.UN (TSX) was found as of September 2026, so this screen relies entirely on the company's published figures. Other REITs on this site - CAPREIT, RioCan, Choice Properties, H&R REIT, SmartCentres and Granite - are screened on the same business, debt and income basis.

Sources

Screened September 30, 2026 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.