VANCOUVER, Nov. 12, 2014 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) announced today the grand opening of the new 50-room Oak Tree Inn hotel and Penny's Diner in Glendive, Montana (the "Property").
The Property was acquired on October 28, 2014 for US$4.9 million from SunOne Developments Inc. ("SunOne") pursuant to the Master Development Agreement between AHIP and SunOne. The Property opened yesterday with a ribbon cutting ceremony involving city officials including the Mayor of Glendive, railway officials, SunOne and AHIP representatives. The Property is secured by a 10-year railway contract that guarantees a substantial majority of its available room nights.
The Property is located on a two-acre site within the city limits of Glendive, in a rail and highway commercial support district. Glendive is located approximately 150 miles northeast of Billings, Montana.
The Property will be managed by TR Lodging Enterprises Inc., a wholly-owned subsidiary of O'Neill Hotels & Resorts Ltd. Following the opening of the Property, AHIP's portfolio of Oak Tree Inn properties is comprised of 36 hotels with a total of 2,747 guestrooms, and 25 Penny's Diner restaurants.
"The Glendive location is the second Oak Tree Inn hotel and Penny's Diner built by SunOne and delivered to AHIP on budget in 2014" said Mr. Rob O'Neill, Chief Executive Officer. "We look forward to the delivery of two more new-build Oak Tree Inn hotels totalling 135 guestrooms within the next 90 days. AHIP continues to explore a number of new-build and conversion opportunities to expand its portfolio of Oak Tree Inn hotels, the largest and highest quality chain of crew lodging facilities presently serving the U.S. freight railway industry."
U.S. FREIGHT RAIL CONTINUES TO POST HEALTHY GAINS
The monthly Rail Time Indicators released on November 7, 2014 continues to highlight several positive trends in U.S. freight railway traffic. From October 2013 to October 2014, total U.S. freight rail carloads increased by 4.4% and intermodal volume increased by 4.9%. October's weekly average traffic of 276,350 containers and trailers was the highest ever recorded. Year-over-year carloads of petroleum and petroleum products are up 20.7%, carloads of crushed stone, sand and gravel are up 10.4%, and coal carloads are up 3.9% through October 2014.
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 construction schedule of previously announced development projects, the potential for future development projects, the new construction and the purchase and renovation of hotel properties, negotiations for new build and conversion opportunities and negotiations for new railway lodging contracts to provide accommodation.
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 completion of the other previously announced development properties; the future performance of the Property; the needs of railway clients; and the ability to acquire additional hotels on an accretive basis. 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 26, 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 is engaged primarily in the railroad employee accommodation, contract-focused, transportation-oriented, and select and limited-service lodging sectors. AHIP's properties are mostly located in secondary and tertiary markets in the United States in close proximity to railroads, airports, highway interchanges, and other transportation hubs and demand generators. AHIP currently owns 55 hotels, 36 serve the U.S. rail industry pursuant to long-term railway contracts and 19 are affiliated with leading national and international hotel brands. 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.
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SOURCE American Hotel Income Properties REIT LP