VANCOUVER,
Nov. 24, 2014 /PRNewswire/ - American
Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN;
OTCQX: AHOTF) today announced the acquisition of its 60th hotel - a
newly built 25-room Oak Tree Inn and Penny's Diner in Brunswick, Maryland (the "Property")
from SunOne Developments Inc. ("SunOne"). The total purchase
price of approximately US$2.8 million
plus customary closing costs and adjustments was funded by cash on
hand offset by approximately US$0.4
million in mezzanine loans owed by SunOne to AHIP.
Mr. Robert
O'Neill, Chief Executive Officer of AHIP commented, "The
Brunswick hotel is the 37th Oak
Tree Inn hotel in our rail portfolio and the third such property
built by SunOne and delivered to AHIP during 2014. The Property is
secured by a long-term railway contract that guarantees the
majority of its available rooms. AHIP continues to explore a number
of opportunities to expand its portfolio of Oak Tree Inn hotels,
the largest and highest quality chain of crew lodging facilities
presently serving the U.S. freight railway industry.
Following the acquisition of the Property and the completion of the
previously announced acquisition of four hotels in North Carolina and Florida, AHIP's portfolio will consist of 60
hotels comprised of 37 Oak Tree Inn hotels with 2,772 guestrooms
and 23 branded hotels with 2,347 guestrooms franchised with leading
national and international hotel brands."
The Property is located approximately 60 miles
northwest of Washington, D.C. and
will be managed by TR Lodging Enterprises Inc., a wholly-owned
subsidiary of O'Neill Hotels & Resorts Ltd.
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 construction schedule of previously announced
development projects, the potential for future development
projects, negotiations for new railway lodging contracts and the
completion of the previously announced acquisition of four hotels
in North Carolina and Florida.
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; the completion of the other previously announced
development properties; the future performance of the Property; the
needs of railway clients; and the ability to acquire additional
hotels on an accretive basis. 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, those factors that can be
found under "Risk Factors" in AHIP's Annual Information Form dated
March 26, 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 is engaged
primarily in the railroad employee accommodation, contract-focused,
transportation-oriented, and branded select-service lodging
sectors.
AHIP's properties are mostly located in
secondary and tertiary markets in the
United States in close proximity to railroads, airports,
highway interchanges, and other transportation hubs and demand
generators. 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 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