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American Hotel Income Properties REIT LP Announces Agreement to Sell its Economy Lodging Portfolio of 45 Hotels for US$215.5 Million
American Hotel Income Properties REIT LP Announces Agreement to Sell its Economy Lodging P...
About this update from American Hotel Income Properties Reit Lp
[{"type":"text","content":"\n\n\n\nAmerican Hotel Income Properties REIT LP Announces Agreement to Sell its Economy Lodging Portfolio of 45 Hotels for US$215.5 Million\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, July 29, 2019\n\n\n\nAHIP has agreed to sell its Economy Lodging portfolio of 45 hotel properties for a total sale price of US$215.5 millionThe sale price represents an attractive selling capitalization rate of approximately 8.2%, based on trailing 12-months net operating income, after management fees and FF&E reservePost sale of the Economy Lodging Portfolio, AHIP's portfolio will be comprised of 100% Premium Branded hotelsTransaction simplifies AHIP's business structure and allows management to focus exclusively on the Premium Branded hotel portfolioThe sale will enhance AHIP's overall corporate liquidity and help fund its strategic objectives of expanding and driving growth from its Premium Branded hotel portfolio VANCOUVER, July 29, 2019 /CNW/ - American Hotel Income Properties REIT LP (\"AHIP\" or the \"Company\") (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U) is pleased to announce that it has reached a definitive agreement (the \"Definitive Agreement\") to sell its Economy Lodging portfolio consisting of 45 hotel properties through certain of its subsidiaries to an affiliate of VCM, Ltd. (\"VCM\") for US$215.5 million (excluding closing and post-closing adjustments). This sale culminates an extensive review of the portfolio that reinforced AHIP's view that its long-term strategy is better focused on expanding and driving growth from its Premium Branded hotel portfolio, which currently consists of 67 hotels in larger U.S. secondary markets that are predominantly affiliated with Marriott, Hilton and IHG hotel brands.\nAfter the repayment of property mortgages and transaction closing costs, the net proceeds from the sale of approximately US$90 million will be redeployed to acquire additional Premium Branded hotels that are better suited to AHIP's long-term strategy, and also used for general corporate purposes.\n\"This is a transformational transaction f...