VANCOUVER, BC--(Marketwired - December 02, 2016) - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN) (OTCQX: AHOTF) announced today the completion of its previously announced acquisition of a 104-room rail crew hotel located in Nashville, Tennessee (the "Nashville Property") for an aggregate purchase price of US$8.7 million, including approximately US$950,000 of planned capital expenditures, and excluding closing and post-acquisition adjustments. AHIP funded the purchase price of the Nashville Property with cash on-hand from its July 2016 unit offering and with its revolving line of credit, and expects to refinance the property with a conventional mortgage before year-end.
Mr. Rob O'Neill, Chief Executive Officer of AHIP, commented, "I am pleased to announce the expansion of our relationship with a key railway customer with a new 58-room, multi-year rail crew lodging contract in one of the strongest RevPAR growth markets in the United States." Mr. O'Neill continued, "The Nashville Property is also ideally located approximately one mile from Nashville International Airport and is expected to have significant commercial guest opportunities to augment operating results."
AHIP's portfolio is now comprised of 91 hotels totaling 8,156 guestrooms, which includes 46 rail hotels totaling 3,893 guestrooms and 45 branded hotels totaling 4,263 guestrooms.
The Nashville Property will be converted to AHIP's proprietary Oak Tree Inn brand and will be managed by Tower Rock Hotels & Resorts Inc., a wholly-owned subsidiary of O'Neill Hotels & Resorts Ltd.
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, references to the cost and scope of the planned capital expenditures for the Nashville Property; closing and post-acquisition adjustments to the purchase price of the Nashville Property; management's expectation that AHIP will refinance the Nashville Property with a conventional mortgage before year-end; management's expectation that the Nashville Property will have significant commercial guest opportunities to augment operating results; management's expectation that the Nashville Property will be converted to an Oak Tree Inn; and the management of the Nashville Property by Tower Rock Hotels & Resorts Inc.
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, the ability to secure mortgage financing to refinance the Nashville Property, the timing and scope of renovation work required to convert the Nashville Property to Oak Tree Inn standards and the ability to successfully complete such work, the ability to successfully integrate the Nashville Property into AHIP's existing portfolio of rail hotels, the accuracy of third party reports with respect to lodging industry data for the Nashville Area, the ability of AHIP to successfully attract commercial guests for the Nashville Property 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 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 17, 2016 and under "Risks and Uncertainties" in AHIP's Management's Discussion and Analysis dated November 7, 2016, both of which are available on SEDAR at www.sedar.com.
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 rail crew accommodation, transportation-oriented, and select-service lodging sectors. AHIP's hotels are mostly located in secondary and tertiary markets in the United States in close proximity to railroads, airports, highway interchanges, and other 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 NEWS RELEASE.
FOR FURTHER INFORMATION, PLEASE CONTACT:
American Hotel Income Properties REIT LP
Suite 1660 - 401 West Georgia Street
Vancouver, B.C. V6B 5A1