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American Hotel Income Properties Acquires $41 Million Hotel Portfolio

American Hotel Income Properties Acquires $41 Million Hotel Portfolio

VANCOUVER—American Hotel Income Properties REIT has agreed to acquire through its subsidiaries a portfolio of four branded hotel properties located in North Carolina and Florida for an aggregate purchase price of $41 million before customary closing and post-acquisition adjustments. The purchase price does not include a $2.5 million restricted cash reserve for the completion of brand mandated property improvement plans (PIPs).

The properties are being purchased at a weighted-average capitalization rate of 8.3 percent on trailing 12 months net operating income (after inclusion of all hotel management fees, brand franchise fees, a 4 percent FF&E reserve contribution and PIPs).

The four select-service hotel properties consist of three Marriott branded properties (a 94-room Courtyard hotel in Statesville, N.C., an 83-room Fairfield Inn and Suites in Melbourne, Fla., and a 96-room Fairfield Inn and Suites in Titusville, Fla.), and one Hilton branded property (an 80-room Hampton Inn in Statesville, N.C.). The properties are located along major U.S. Interstate Highways near transportation hubs and other significant demand generators.

“This investment is consistent with our stated growth strategy targeting acquisitions of transportation-oriented and branded, select-service hotels located in secondary markets in the United States close to major demand generators,” said Robert O’Neill, AHIP’s chief executive officer.

The acquisition properties will be managed for AHIP by its exclusive hotel manager, Tower Rock Hotels & Resorts Inc., a wholly owned subsidiary of O’Neill Hotels & Resorts Ltd.

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