American Hotel Income Properties REIT LP announces closing of three hotels in North Carolina and Georgia
VANCOUVER, July 3, 2014 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) today announced the closing of three hotels (the "Acquisition") in a portfolio of four hotel properties (the "Acquisition Properties") located in North Carolina and Georgia. The purchase of the Acquisition Properties was previously announced on June 26, 2014. The three hotels comprise a total of 280 guest rooms.
The three Acquisition Properties completed today are located in North Carolina and Georgia and are proximate to transportation hubs and other major demand generators such as military bases, manufacturing facilities and medical centers. The three properties include a 111 room Hampton Inn hotel and 87 room Fairfield Inn & Suites hotel located in Asheboro, North Carolina, and an 82 room Fairfield Inn & Suites hotel located in Kingsland, Georgia.
The fourth Acquisition Property, the 107 room SpringHill Suites – Pinehurst, North Carolina, is expected to close within approximately 15 business days, once certain documentation requirements are completed in connection with the assumption of the existing CMBS loan on the property. AHIP made the decision to complete the purchase of the three identified hotels immediately in order to enjoy the benefits of the US July 4th long weekend business and to close new-issue CMBS debt financing with a 4.72% fixed interest rate and ten year term on the two Fairfield Inn & Suites hotels.
AHIP funded the purchase price for the Acquisition using a combination of cash from AHIP's bought deal offering of units that closed on June 4, 2014, assumed CMBS debt on the Hampton Inn and new CMBS debt on the two Fairfield Inn & Suites properties. The SpringHill Suites – Pinehurst is expected to be purchased with cash from AHIP's bought deal and assumed CMBS debt.
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 following: references to local lodging demand generators; the completion and timing of the acquisition of the SpringHill Suites – Pinehurst; the near term growth of the Acquisition Properties and US hotel industry overall; the availability of accretive acquisition opportunities; expansion of the AHIP rail portfolio; and future availability of low cost CMBS financing.
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 and the ability to successfully integrate the Acquisition Portfolio. 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, the expected closing of the SpringHill Suites – Pinehurst acquisition and other factors that can be found under "Risk Factors" in AHIP's Annual Information Form dated March 26, 2014 and AHIP's Short Form Prospectus dated May 29, 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 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 US; (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.
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SOURCE American Hotel Income Properties REIT LP