American Hotel Income Properties REIT LP announces Q1 2013 results, the opening of two new Oak Tree Inn hotels and schedules conference call

VANCOUVER, May 13, 2013 /CNW/ - American Hotel Income Properties REIT LP ("AHIP") (Toronto Stock Exchange: HOT.UN) today announced the release of its financial results for the three months ended March 31, 2013. AHIP also announced the opening of its second new Oak Tree Inn hotel in 2013.

2013 Q1 financial highlights and recent events

• Successfully closed its initial public offering (the "IPO") on February 20, 2013 and the remainder of a related over-allotment on March 1, 2013, through the issuance of 10,405,000 units for gross proceeds of Cdn$100,050,000
• Completed the transition of hotel management operations to AHIP's external hotel manager for the 32 hotel properties acquired by AHIP in connection with its IPO
• Portfolio comprised of 32 hotels located in 19 states as at March 31, 2013, representing 2,505 available guest rooms
• 80.0% occupancy rate for the 39-day period from February 20, 2013 to March 31, 2013
• Total revenues for the 39 day period of US$5,574,100
• Funds From Operations ("FFO") for the 39 day period of US$818,446 (US$0.165 per weighted average Unit)
• Adjusted Funds From Operations ("AFFO") for the 39 day period of US$736,769 (US$0.148 per weighted average Unit)
• Debt to gross book value as at March 31, 2013 of 42.5%
• Distributions of Cdn$0.096 per Unit were declared for the period from February 20, 2013 to March 31, 2013 and was paid on April 15, 2013
• On April 19, 2013, a cash distribution of Cdn$0.075 per Unit was declared for the month of April 2013 (Cdn$0.90 per Unit on an annualized basis), for payment on May 15, 2013.

"We are off to a strong start in 2013 with a smooth transition of the management of our hotel assets and our Q1 operating results in line with our expectations," said Mr. Rob O'Neill, Chief Executive Officer. "Capital investments in the hotel and lodging sectors are growing and the outlook for the sectors continues to strengthen. We are well positioned to benefit from this positive economic trend through the expansion of our existing portfolio, organic growth, participation in strategic development opportunities, and accretive acquisitions as we increase the scale and scope of our portfolio."

Mr. O'Neill further commented, "It's our intention to deploy the extra funds raised, pursuant to our IPO, on accretive acquisitions. As part of our overall acquisition strategy, AHIP engaged Dan Miller of Lodging & Leisure Investment Advisors, LLC to lead AHIP's acquisitions. Over an impressive 30 year career in the hospitality industry, Mr. Miller has been involved in acquisitions, development and capital transactions with some of the U.S. hospitality industry's best known businesses and has handled over $1 billion of hotel transactions."

Opening of Two New Oak Tree Inn Hotels

The grand opening of the newly-built 60-room Oak Tree Inn hotel located in Livonia, Louisiana is scheduled for Wednesday May 15, 2013. This is the second new hotel added to the Oak Tree Inn chain under AHIP's ownership so far in 2013, following closely after the January opening of the new 56-room Oak Tree Inn hotel and 24-hour Penny's Diner located in Glenwood, Minnesota. These properties are under the management of TR Lodging Enterprises Inc.

The 56-room Glenwood hotel and the 60-room Livonia hotel were included in the 32 initial properties as described in AHIP's final prospectus dated February 12, 2013, which was filed on SEDAR in conjunction with AHIP's IPO.

Following the opening of the Livonia property, AHIP`s portfolio will be comprised of 32 fully operational hotel properties, including 23 diners and 2,565 guest rooms.

Conference Call

AHIP also announced the scheduling of its Q1 2013 Financial Results Conference Call. Rob O'Neill, CEO and Robert Hibberd, CFO of AHIP will host a conference call at 5:00pm (Eastern time) or 2:00pm (Pacific time), on Tuesday May 14, 2013, to review the financial results and corporate developments for the period ended March 31, 2013.

To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call, and ask to join the AHIP conference call.

Conference Call Replay

If you cannot participate on May 14, 2013, a replay of the conference call will be available by dialing one of the following replay numbers. You will be able to dial in and listen to the conference two hours after the meeting end time, and the replay will be available until May 21, 2013.

Please enter the Replay ID number 635925.

Forward-Looking Information

Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.

Forward-looking information contained in this press release is based on certain key expectations and assumptions made by AHIP, including, without limitation, expectations and assumptions respecting the amount of the expected monthly cash distributions and annual yield for the Units and the timing to pay such cash distributions to unitholders, and a reasonably stable North American economy and stock market. Although the forward-looking information contained in this press release is based upon what the 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 management regarding future events and operating performance as of the date of this press 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. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in AHIP's final prospectus dated February 12, 2013 and Management's Discussion and Analysis dated May 13, 2013, which are available on SEDAR (www.sedar.com).

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to AHIP. The forward-looking information is made as of the date of this press release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law

About American Hotel Income Properties REIT LP

AHIP is a limited partnership formed under the Limited Partnership 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 AHIP's interim financial statements for the three months ended March 31, 2013, AHIP's Management's Discussion and Analysis dated May 13, 2013, and other public filings are available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.

SOURCE: American Hotel Income Properties REIT LP