American Hotel Income Properties REIT LP Announces Completion of Jefferson City, Missouri Hotel Renovation and Conversion to Oak Tree Inn
VANCOUVER, Feb. 4, 2014 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (Toronto Stock Exchange: HOT.UN; OTCQX: AHOTF) today announced the grand opening of the fully renovated Oak Tree Inn hotel located in Jefferson City, Missouri. The previously announced 77-room nationally franchised hotel was acquired on September 12, 2013 with cash. A long-term railway contract with a leading US railroad customer is now in place and new mortgage financing is expected by management to be obtained shortly.
As part of a comprehensive $1 million renovation, AHIP implemented Oak Tree Inn's brand standards at the Jefferson City property including noise, light and temperature control features desired by AHIP's railroad customers.
"The acquisition and renovation of the Jefferson City property illustrates another key step in our strategy to expand the Oak Tree Inn brand," said Robert O'Neill, CEO. "The railway industry is one that we know well and for decades Oak Tree Inn has set the standard for employee comfort and reliability by providing quality crew lodging facilities for its US railroad customers. This investment also met and exceeded all our previously stated investment criteria."
"We continue to work cooperatively with our railway customers to secure long-term contracts by investing in hotels in strategic rail locations where they have strong needs for our accommodation services and are economically beneficial to both parties."
Through its wholly-owned indirect subsidiaries, AHIP currently owns 38 hotels in 20 States. Within AHIP's railway contract portfolio of 34 hotel properties, 33 properties are under AHIP's "Oak Tree Inn" brand and include 23 24-hour diners under AHIP's "Penny's Diner" brand, with an additional four Oak Tree Inns and three Penny's Diners presently under construction and development.
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: the obtainment of new mortgage financing for the Jefferson City property and the focus on acquiring additional suitable hotels in strategic locations.
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 Jefferson City property. 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 28, 2013 and AHIP's Short Form Prospectus dated October 24, 2013.
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 Adjusted Funds From Operations 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