American Hotel Income Properties REIT LP (TSX: HOT.UN) (OTCQX: AHOTF) announced on Friday the completion of its previously announced acquisition of a portfolio of four Marriott-branded, select-service hotels for an aggregate purchase price of US$47.0 million excluding approximately US$2.8 million for brand-mandated property improvement plans and before customary closing and post-acquisition adjustments.
The Acquisition Properties are located in Jacksonville and Lake City, Florida, and Chattanooga, Tennessee with a total of 374 guestrooms that have been acquired below management's estimate of replacement cost. The Acquisition Properties include a 109-room Residence Inn, two 89-room Fairfield Inn & Suites, and an 87-room TownePlace Suites. The four hotels are franchised by Marriott International and are strategically located near major transportation corridors and a variety of commercial, manufacturing and distribution demand generators.
AHIP funded the purchase price and the PIPs with cash on hand, and will be arranging mortgage financing over the next 30 days. The mortgage will be a new commercial mortgage backed securities loan with a 10-year term and a fixed interest rate of approximately 4.50%.
AHIP's portfolio now consists of 84 hotels totaling 7,493 guest rooms with 39 branded hotels totaling 3,704 guest rooms and 45 rail hotels totaling 3,789 guest rooms.
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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