VANCOUVER, BC --(Marketwired - December 19, 2017) - American Hotel Income
Properties REIT LP ("AHIP") (TSX: HOT.UN) (TSX: HOT.U) (TSX: HOT.DB.U) is pleased
to confirm that its previously announced agreement with Wyndham Hotel Group to convert 46 hotels -- including all of the hotels
in its Rail Hotel portfolio -- to Wyndham hotel brands, has now been completed. In total, 28 hotels have converted to Travelodge®
hotels, 15 hotels have become Baymont Inn & Suites®, two properties are now Super 8® hotels, and one hotel will remain a Days
Inn®. Each of these hotels can now be booked through Wyndham's worldwide reservation network, and all converted hotels now
provide the hospitality and guest experience expected from Wyndham brands, including earning and redeeming Wyndham Rewards
points.
"This is a pivotal strategy for our Rail Hotel portfolio, as the enhanced brand awareness and greater market appeal of these
properties will allow us to more effectively fill guestrooms not already utilized under our rail crew contracts," said Ian
McAuley, President, AHIP. "We believe this increased productive capacity will drive incremental revenue and earnings accretion
and enhance the margin profile of this portfolio of hotels."
Mr. McAuley added: "Going forward, the Rail Hotel portfolio will be known as our Economy Lodging hotel portfolio to better
reflect the broader market appeal of these hotel properties."
To celebrate this significant rebranding initiative, Mr. McAuley and Robert Pratt, President of ONE Lodging Management (AHIP's
exclusive hotel manager), and senior Wyndham executives, including Geoff Ballotti, President and CEO of Wyndham Hotel Group,
unveiled two of the newly rebranded AHIP properties on Monday, December 18, 2017: the Baymont Inn & Suites, and the Travelodge in
Wellington, Kansas.
"This has been the single largest transition of hotels to Wyndham's platform, yet the onboarding of these 46 properties has
been absolutely seamless," said Mr. Ballotti. "We look forward to welcoming many more guests, and offering them access to our
award-winning Wyndham Rewards program, through all of American Hotel Income Properties' Wyndham branded hotels."
While this branding strategy is expected to significantly strengthen the appeal of AHIP's Economy Lodging hotel portfolio, the
company continues to cater to the needs of its valued rail crew customers with the promise of a 'dark and quiet' sleeping
experience. The agreement with Wyndham will have no impact on AHIP's current or future rail crew contracts and no impact to the
financial contributions AHIP generates from its rail crew contract business.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN) (TSX:
HOT.U) (TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real
estate properties located substantially in the United States. AHIP currently has 115 hotels, and is actively engaged in growing
its portfolio of premium branded, select-service hotels in larger secondary markets that have diverse and stable demand. AHIP
hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. The
company's long-term objectives are to build on its proven track record of successful investment, deliver reliable and consistent
U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel
portfolio. More information is available at www.ahipreit.com.
FORWARD-LOOKING INFORMATION
Certain statements in this news 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 generally can be identified by the use of terms and phrases such as
"anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to",
"will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking
statements in this news release include, but are not limited to, statements with respect to: the belief that the rebranding will
allow AHIP to more effectively fill guestrooms not already utilized under rail crew contracts and will drive incremental revenue
and earnings accretion and enhance the margin profile of the Rail Hotel portfolio; and AHIP's long-term objectives.
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 continued strength of the U.S. lodging industry;
capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; the
accuracy of third party reports with respect to lodging industry data; and the value of the U.S. dollar. 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 statements are provided for the purpose of presenting information about management's current expectations and
plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.
Forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance
or results. Those risks and uncertainties include, among other things, risks related to: general economic conditions; future
growth potential; AHIP's unit prices; liquidity; tax risk; tax laws currently in effect remaining unchanged; ability to access
capital markets; competition for real property investments; environmental matters; the value of the U.S. dollar; and changes in
legislation or regulations. Management believes that the expectations reflected in forward-looking statements are based upon
reasonable assumptions and information currently available; however, management can give no assurance that actual results will be
consistent with these forward-looking statements. Additional information about risks and uncertainties is contained in AHIP's
MD&A dated November 7, 2017 and annual information form for the year ended December 31, 2016, copies of which are available
on SEDAR at 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 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.