/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
VANCOUVER, June 4, 2014 /CNW/ - American Hotel Income Properties REIT LP
("AHIP") (Toronto Stock Exchange: HOT.UN; OTCQX: AHOTF) announced today the
closing of its previously announced public offering (the "Offering") of 4,900,000 limited partnership units (each a "Unit"), on a bought deal basis, at a price of Cdn$10.35 per Unit, for total
gross proceeds of Cdn$50,715,000. Included in the closing were 552,000
Units (Cdn$5,713,200) from a partial exercise of the over-allotment
option described in AHIP's short form prospectus dated May 29, 2014
(the "Prospectus"), which is available on SEDAR at www.sedar.com.
The Offering was conducted through a syndicate of underwriters co-led by
Canaccord Genuity Corp. and National Bank Financial Inc., and including
CIBC World Markets Inc., TD Securities Inc., Haywood Securities Inc.,
Scotia Capital Inc. and Dundee Securities Ltd.
As described in the Prospectus, AHIP intends to use the net proceeds of
the offering to: (i) acquire from SunOne Developments Inc., upon
completion of construction, three previously announced hotel
developments located in Brunswick, Maryland; Wellington, Kansas; and
Glendive, Montana (the "New Oak Tree Inns") which are scheduled to open between September and December 2014; (ii)
partially fund the acquisition of two additional railway lodging
facilities which will require renovations to meet Oak Tree Inn quality
standards (the "Additional Railway Hotels"); (iii) partially fund the potential acquisition of two high-quality
nationally-branded hotel portfolios (the "Additional Other Branded Hotel Portfolios"); and (iv) fund working capital and general corporate purposes.
The Units sold pursuant to the Offering have been listed on the Toronto
Stock Exchange under AHIP's existing trading symbol HOT.UN. AHIP now
has 19,467,547 Units issued and outstanding.
These securities have not been, and will not be, registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of such Act.
This news release does not constitute an offer for sale of these
securities in the United States.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking information within the
meaning of applicable securities legislation, which reflects AHIP's
current expectations regarding future events. Forward-looking
information is identified by the use of terms and phrases such as
"anticipate", "believe", "budget", "could", "estimate", "expect",
"going-in", "intend", "may", "plan", "predict", "project", "will",
"would" and similar terms and phrases, including references to
assumptions. Such information includes, but is not limited to: the use
of proceeds from the Offering, including the potential acquisition,
renovation, opening and operation, as applicable, of the New Oak Tree
Inns, the Additional Railway Hotels and/or the Additional Other Branded
Hotel Portfolios. Actual events or results may differ materially.
Forward-looking information contained in this news release is based on
certain key expectations and assumptions made by AHIP, including,
without limitation: the acquisition, renovation, opening and successful
integration, as applicable, of the New Oak Tree Inns, the Additional
Railway Hotels and/or the Additional Other Branded Hotel Portfolios;
capitalization rates; fees and reserves; targeted opening dates;
locations; appraised values; replacement costs; pro forma leverage; and
payout ratios. Although the forward-looking information contained in
this news release is based upon what AHIP's management believes to be
reasonable assumptions, AHIP cannot assure investors that actual events
or 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 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. 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 the Prospectus, "Risk Factors" in AHIP's
Annual Information Form dated March 26, 2014 and under "Risks and
Uncertainties" in AHIP's Management's Discussion and Analysis dated May
9, 2014, each of which is available on SEDAR at www.sedar.com.
The forward-looking information contained herein is expressly qualified
in its entirety by this cautionary statement. The forward-looking
information is made as of the date of this news 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.
The potential acquisitions of the Additional Railway Hotels and
Additional Other Branded Hotel Portfolios described in this news
release and the Prospectus are indicative only, as these potential
transactions are being evaluated and negotiated with the applicable
sellers. In addition, each acquisition, if it proceeds, would be
subject to conditions, including satisfactory completion of AHIP's due
diligence and negotiation of formal legal documents. For example, AHIP
cautions that there can be no assurance that any transaction will
result from the conditional purchase and sale agreements and
non-binding letters of intent described in the Prospectus with respect
to the Additional Railway Hotels and the Additional Other Branded Hotel
Portfolios, or what the terms of such transactions, if any, may be.
AHIP undertakes no obligation to update investors on the status of any
potential acquisitions described in this news release or the Prospectus
unless and until its acquisition due diligence is complete, all other
applicable conditions are satisfied or waived and the Board of
Directors of AHIP's general partner has approved the transaction, in
each case.
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 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
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 NEWS RELEASE.
SOURCE American Hotel Income Properties REIT LP
