VANCOUVER, July 3,
2014 /PRNewswire/ - American Hotel Income Properties REIT LP
("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) today announced the
closing of three hotels (the "Acquisition") in a portfolio
of four hotel properties (the "Acquisition Properties")
located in North Carolina and
Georgia. The purchase of the Acquisition Properties was previously
announced on June 26, 2014. The three
hotels comprise a total of 280 guest rooms.
The three Acquisition Properties completed today
are located in North Carolina and
Georgia and are proximate to transportation hubs and other major
demand generators such as military bases, manufacturing facilities
and medical centers. The three properties include a 111 room
Hampton Inn hotel and 87 room Fairfield Inn & Suites hotel
located in Asheboro, North
Carolina, and an 82 room Fairfield Inn & Suites hotel
located in Kingsland, Georgia.
The fourth Acquisition Property, the 107 room
SpringHill Suites – Pinehurst, North
Carolina, is expected to close within approximately 15
business days, once certain documentation requirements are
completed in connection with the assumption of the existing CMBS
loan on the property. AHIP made the decision to complete the
purchase of the three identified hotels immediately in order to
enjoy the benefits of the US July
4th long weekend business and to close new-issue
CMBS debt financing with a 4.72% fixed interest rate and ten year
term on the two Fairfield Inn & Suites hotels.
AHIP funded the purchase price for the
Acquisition using a combination of cash from AHIP's bought deal
offering of units that closed on June 4,
2014, assumed CMBS debt on the Hampton Inn and new CMBS debt
on the two Fairfield Inn & Suites properties. The SpringHill
Suites – Pinehurst is expected to
be purchased with cash from AHIP's bought deal and assumed CMBS
debt.
Forward-Looking Information
Certain statements contained in this news release
may constitute forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "anticipate", "plan", "expect", "may", "will",
"intend", "should", and similar expressions. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements.
Forward-looking statements in this news release include, without
limitation, the following: references to local lodging demand
generators; the completion and timing of the acquisition of the
SpringHill Suites – Pinehurst; the
near term growth of the Acquisition Properties and US hotel
industry overall; the availability of accretive acquisition
opportunities; expansion of the AHIP rail portfolio; and future
availability of low cost CMBS financing.
Forward-looking information is based on a number
of key expectations and assumptions made by AHIP, including,
without limitation: a reasonably stable North American economy and
stock market and the ability to successfully integrate the
Acquisition Portfolio. Although the forward-looking information
contained in this news release is based on what AHIP's management
believes to be reasonable assumptions, AHIP cannot assure investors
that actual results will be consistent with such information.
Forward-looking information reflects current
expectations of AHIP's management regarding future events and
operating performance as of the date of this news release. Such
information involves significant risks and uncertainties, should
not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether or not such
results will be achieved. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, without limitation, the expected closing of
the SpringHill Suites – Pinehurst
acquisition and other factors that can be found under "Risk
Factors" in AHIP's Annual Information Form dated March 26, 2014 and AHIP's Short Form Prospectus
dated May 29, 2014.
The forward-looking statements contained herein
represent AHIP's expectations as of the date of this news release,
and are subject to change after this date. AHIP assumes no
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by applicable law.
About American Hotel Income Properties REIT
LP
AHIP is a limited partnership formed under the
Limited Partnerships Act (Ontario) to invest in hotel real estate
properties located substantially in the
United States and engaged primarily in the railroad employee
accommodation, transportation and contract-focused lodging sectors.
AHIP's long-term objectives are to: (i) generate stable and growing
cash distributions from hotel properties substantially in the US;
(ii) enhance the value of its assets and maximize the long-term
value of the hotel properties through active management; and (iii)
expand its asset base and increase its AFFO per Unit through an
accretive acquisition program, participation in strategic
development opportunities and improvements to its properties
through targeted value-added capital expenditure programs.
Additional information relating to AHIP,
including its other public filings, is available on SEDAR at
www.sedar.com and on AHIP's website at www.ahipreit.com.
THE TORONTO
STOCK EXCHANGE HAS NOT REVIEWED
AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY
OF THIS RELEASE.
SOURCE American Hotel Income Properties REIT LP