VANCOUVER, BC, Sept. 1, 2020 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP" or the "Company") (TSX: HOT.UN, HOT.U, and HOT.DB.U) announced today that it has closed the previously announced sale of its 86-room Wingate Tampa property for gross proceeds of US$7.5 million. AHIP has provided US$2.65 million in financing for the buyer, secured by a mortgage, which is repayable at the end of three years along with accrued interest. Net proceeds of the sale will be used to repay amounts outstanding under the Company's revolving credit facility.
"We're pleased to complete the sale of this non-core asset, which was nearing significant brand-mandated renovation commitments," said John O'Neil, CEO. "We expect minimal FFO dilution and believe using the proceeds to reduce our debt is the most efficient use of capital at this time."
Following this sale, AHIP now owns 78 Premium Branded select-service hotel properties (totaling 8,801 guestrooms) located in 22 states and 51 cities, including 24 extended-stay oriented hotels. Its portfolio now consists of 34 Marriott-branded hotels, 28 Hilton-branded hotels, 15 IHG-branded hotels and one Choice-branded hotel.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's portfolio of 78 premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through license agreements. The Company's long-term objectives are to build on its proven track record of successful investment, deliver monthly 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" within the meaning of applicable securities laws. Forward-looking information 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 information referred to in this news release includes, but is not limited to, statements with respect to: the expectation by management that AHIP will experience minimal FFO dilution from the sale of this hotel; management's belief that using the proceeds to reduce AHIP's debt is the most efficient use of capital at this time; 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: AHIP will be successful in executing its strategic plan; the COVID-19 pandemic will continue to negatively impact the U.S. economy, U.S. hotel industry and AHIP's business, and the extent and duration of such impact; a reasonably stable North American economy and stock market; the continued long-term strength of the U.S. lodging industry; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; 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 and on information currently available, AHIP cannot assure investors that actual results will be consistent with such information.
Forward-looking information involves 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: the possibility that the performance of AHIP's portfolio may not be maximized and long-term value enhancement may not be achieved at anticipated levels, or at all; the pace of recovery following the COVID-19 pandemic cannot be accurately predicated and may be slow; AHIP may not be successful in executing its strategic plan; current occupancy recovery trends at AHIP's hotels may not continue, may decelerate or regress; and AHIP may not realize any of its long term objectives contemplated in this news release or otherwise. Additional information about risks and uncertainties is contained in AHIP's MD&A dated August 6, 2020 and annual information form for the year ended December 31, 2019, 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