VANCOUVER, Nov. 24, 2014 /CNW/ - 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
