Business
American Hotel Income Properties Completes the Previously Announced Acquisition of 12 Premium Branded Hotels
American Hotel Income Properties Completes the Previously Announced Acquisition of 12 Prem...
About this update from American Hotel Income Properties Reit Lp
[{"type":"text","content":"\n\n\n\nAmerican Hotel Income Properties Completes the Previously Announced Acquisition of 12 Premium Branded Hotels\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Dec. 3, 2019\n\n\n\n(All numbers are in U.S. dollars unless otherwise indicated)\n VANCOUVER, Dec. 3, 2019 /CNW/ - American Hotel Income Properties REIT LP (\"AHIP\", the \"Company\") (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U) is pleased to announce that it has closed the previously announced acquisition of 12 Premium Branded hotels (the \"Acquisition\") for $191.0 million, effective today. In addition, AHIP has secured a five-year $105.0 million interest-only term loan to partially finance the Acquisition and has entered into a swap rate agreement to fix the interest rate on the term loan to a maximum of 3.52% for four years. AHIP has also secured a $60.0 million variable rate revolving credit facility with an initial term of four years to replace its current revolving credit facility with the same lender.  \nThe 12 Premium Branded hotels were acquired for approximately $158,800 per key, which is below AHIP's estimate of replacement cost. These properties were all built in the last five years, have been well maintained, and require no major property improvements. As all of these properties were already being managed by Aimbridge Hospitality – AHIP's exclusive hotel manager, it should ensure for a seamless transition into AHIP's portfolio with continuity of hotel systems and staff.\n\"We're very pleased with how quickly this acquisition was completed, as it has allowed us to redeploy the proceeds from the sale of the 45 Economy Lodging properties in less than a week.  Now that these two strategic initiatives have been accomplished, we look forward to focusing on driving growth from our higher-quality portfolio of 79 Premium Branded select-service hotels,\" said John O'Neill, CEO. \nMr. O'Neill continued: \"This acquisition further diversifies our geographic markets across the U.S. and expands our portfolio of suites-focused and extended-stay hot...