VANCOUVER, Nov. 24, 2014 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) today announced the acquisition of its 60th hotel - a newly built 25-room Oak Tree Inn and Penny's Diner in Brunswick, Maryland (the "Property") from SunOne Developments Inc. ("SunOne"). The total purchase price of approximately US$2.8 million plus customary closing costs and adjustments was funded by cash on hand offset by approximately US$0.4 million in mezzanine loans owed by SunOne to AHIP.
Mr. Robert O'Neill, Chief Executive Officer of AHIP commented, "The Brunswick hotel is the 37th Oak Tree Inn hotel in our rail portfolio and the third such property built by SunOne and delivered to AHIP during 2014. The Property is secured by a long-term railway contract that guarantees the majority of its available rooms. AHIP continues to explore a number of 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. Following the acquisition of the Property and the completion of the previously announced acquisition of four hotels in North Carolina and Florida, AHIP's portfolio will consist of 60 hotels comprised of 37 Oak Tree Inn hotels with 2,772 guestrooms and 23 branded hotels with 2,347 guestrooms franchised with leading national and international hotel brands."
The Property is located approximately 60 miles northwest of Washington, D.C. and will be managed by TR Lodging Enterprises 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, the construction schedule of previously announced development projects, the potential for future development projects, negotiations for new railway lodging contracts and the completion of the previously announced acquisition of four hotels in North Carolina and Florida.
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 branded select-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'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