VANCOUVER, BC--(Marketwired - December 22, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES.
American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN) (OTCQX: AHOTF) announced today the completion of its previously announced public offering (the
"Offering") of 11,281,500 limited partnership units (each a "Unit"), on a bought deal basis, at
a price of Cdn$10.20 per Unit, for total gross proceeds of approximately Cdn$115.1 million. The total gross proceeds include the
full exercise of the over-allotment option of 1,471,500 Units for additional proceeds of approximately Cdn$15.0 million. The
Offering is fully described in AHIP's short form prospectus dated December 16, 2016 (the "Prospectus"), which is
available on SEDAR at www.sedar.com.
The Offering was conducted through a syndicate of underwriters co-led by CIBC Capital Markets and National Bank Financial
Inc., with CIBC Capital Markets as the sole bookrunner, and included TD Securities Inc., Canaccord Genuity Corp., BMO Capital
Markets, Scotiabank, Haywood Securities Inc., Industrial Alliance Securities Inc. and RBC Capital Markets.
As described in the Prospectus, AHIP intends to use the net proceeds of the Offering to: (i) partially fund the potential
acquisition (the "Acquisition") of three high-quality Embassy Suites by Hilton branded hotels located within the
Midwestern region of the United States (the "Midwestern 3 Embassy Suites Portfolio"); and (ii) fund working
capital, potential future acquisitions, and for general corporate purposes. In the event that the Acquisition does not close, the
net proceeds will be used for general corporate and working capital purposes, which may include other potential future
acquisitions.
Rob O'Neill, CEO, said, "We are pleased to have the support of both equity and debt markets as we continue to actively pursue
a robust pipeline of high quality rail crew and branded hotels throughout the U.S. generating a stable income stream to our
unitholders."
The Units sold pursuant to the Offering have been listed on the Toronto Stock Exchange ("TSX") under AHIP's
existing trading symbol HOT.UN. AHIP now has 56,367,659 Units issued and outstanding.
This news release shall not constitute an offer to sell or a solicitation of any offer to buy nor shall there be any sale
of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered
have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities
Act"), and such securities may not be offered or sold within the United States absent registration under the U.S. Securities Act
or an applicable exemption from the registration requirements thereunder.
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", "opportunities", "plan",
"potential", "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, without limitation, to partially
fund the potential acquisition of the Midwestern 3 Embassy Suites Portfolio. 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: a reasonably stable North American economy and stock market; the continued strength of the U.S.
lodging industry; the ability to successfully integrate newly-acquired hotels; capital markets will provide AHIP with readily
available access to equity and/or debt financing on terms acceptable to AHIP; and assumptions and expectations related to
capitalization rates, fees and reserves, targeted completion dates, pro-forma leverage and payout ratios for the Acquisition.
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, under "Risk Factors" in
AHIP's Annual Information Form dated March 17, 2016 and under "Risks and Uncertainties" in AHIP's Management's Discussion and
Analysis dated November 7, 2016, 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.
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 rail crew accommodation,
transportation-oriented, and branded, select service lodging sectors. AHIP's hotels are managed by Tower Rock Hotels & Resorts
Inc., a wholly owned subsidiary of O'Neill Hotels and Resorts Ltd.
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.