Hotel Transaction Maryland

American Hotel Income Properties REIT LP Announces Purchase of Land Associated with Maryland Hotel

American Hotel Income Properties

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U)  announced that it has exercised its option to buy out the ground lease associated with its Fairfield Inn & Suites White Marsh hotel in Baltimore, Maryland, and has completed the purchase of land for US$1.9 million plus closing costs. This acquisition is expected to increase AHIP's cash flow by approximately US$165,000 annually, through the elimination of lease payments previously expensed for this property.

"The option to purchase this land was a great opportunity to ensure the long-term security and optionality of our Fairfield Inn & Suites White Marsh property," said John O'Neill. "By removing the monthly lease expense for this land from our operations, this investment is expected to result in an annual cash-on-cash yield of approximately 8.7%."

The 116-room Fairfield Inn & Suites White Marsh was acquired by AHIP in June 2017, alongside 17 other properties along the U.S. eastern seaboard. It is the only hotel AHIP owns that was subject to a ground lease; one other hotel is subject to an air rights lease. With the purchase of this land, 99% of AHIP's hotels are now located on owned property. 

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 located in the United States. AHIP currently has 112 hotels, and is engaged in growing its portfolio of premium branded, select-service hotels in larger secondary markets that have diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements.

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