VANCOUVER, March 23, 2018 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN, HOT.U, and HOT.DB.U) is pleased to announce that it has expanded its in-house Asset Management department, which is responsible for overseeing and enhancing the performance of its hotel portfolio to drive stronger returns for AHIP's unitholders.
"Over the past two years, not only has AHIP's Premium Branded hotel portfolio grown substantially through the strategic acquisition of 32 high-quality premium branded hotels (a 91 % increase), we have also upgraded our Economy Lodging portfolio with the Wyndham branding initiative. While our external hotel manager continues to work diligently to drive strong performance across our 115 hotels, we believe our portfolio is at the scale and complexity to warrant additional oversight and expert support to deliver peak performance. Our newly expanded Asset Management team will work alongside senior members of the external hotel manager to monitor revenue management, review operational efficiencies, establish cost containment strategies and manage capital investment programs to drive stronger returns," said Ian McAuley, President, AHIP.
AHIP's Asset Management department consists of hotel industry experts dedicated to portfolio management of its 115 hotels, which involves the development of long-term strategic plans for each property, including the oversight of the current, pre-funded, US$20 million capital investment program for 2018, designed to deliver top revenue performance and industry best practices. Working closely with the hotel manager, AHIP's Asset Management team also monitors the supply and demand dynamics of specific hotel markets to ensure that each of AHIP's hotels is constantly well positioned to take advantage of revenue generating opportunities and maximize profitability. As well, the Asset Management team will be in close contact with AHIP's leading hotel brand partners, to ensure its hotels are best-in-class, and up-to-date on all brand standards and guest programs. Pankaj Maharjan, Managing Director, Asset Management is overseeing the Asset Management program, with strong support from Martin Pinsker, Senior Director, Investments – who has recently redirected his focus from acquisitions to specifically examine and implement strategies to drive improved performance from AHIP's Economy Lodging hotel portfolio. They are joined by two other experienced industry professionals, and together, have already set performance benchmarks for each property and are working with AHIP's external hotel manager to achieve these targets.
U.S. hotel real estate investment trusts ("REITs"), such as AHIP's wholly-owned subsidiary, American Hotel Income Properties REIT Inc., are required by U.S. tax laws to have an external hotel manager to manage hotel operations on behalf of hotel REITs. AHIP's Asset Management department works with its external hotel manager to drive hotel operating results and create value for its unitholders.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN; HOT.U and 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.
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: AHIP's Asset Management team working closely with the external hotel manager to monitor revenue management, review operational efficiencies and manage capital investment programs; 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 providing 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 March 6, 2018 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.
SOURCE American Hotel Income Properties REIT LP