VANCOUVER, Oct. 29, 2014 /PRNewswire/ - American Hotel
Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX:
AHOTF) today announced the acquisition of a new 50-room Oak Tree
Inn and Penny's Diner in Glendive,
Montana for a total purchase price of approximately
US$4.9 million. The acquisition
was financed by a combination of: (i) approximately
US$800,000 from cash on hand and debt
financing of approximately US$3.1
million through a draw on AHIP's construction facility; (ii)
the offset of approximately US$600,000 in mezzanine loans owed by SunOne
Developments Inc. ("SunOne") to AHIP; and (iii) the issuance
of US$400,000 (or 43,016 units) in
AHIP units from treasury. The units were issued at
Cdn$10.45 per unit.
Mr. Robert O'Neill, Chief
Executive Officer of AHIP commented, "This is the second of four
previously announced development properties for railway clients to
be completed by SunOne. We are pleased with this high quality
addition to our Oak Tree Inn portfolio. SunOne met all of our
expectations on the basis of cost, timing, and quality. The
property is secured by a 10-year railway agreement with room
guarantees of 78% over the contract term and will begin operations
immediately".
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 railway 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 U.S.; (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 is available on SEDAR at www.sedar.com
and on AHIP's website at www.ahipreit.com.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
AHIP's current expectations regarding future events. Events such as
the completion of the other previously announced development
properties to be completed by SunOne and the future performance of
the property are subject to a number of risks and uncertainties,
many of which are beyond AHIP's control, and could cause actual
results and events to differ materially from those that are
disclosed in, or implied by, such forward-looking information.
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