American Hotel Income Properties REIT LP (TSX: HOT.UN) (OTCQX: AHOTF) announced today the completion of its previously announced acquisition of a portfolio of six branded, select-service hotels located in Tampa, Orlando, Sarasota and Fort Myers, Florida for an aggregate purchase price of US$61.0 million excluding approximately US$10.6 million for brand-mandated property improvement plans and before customary closing and post-acquisition adjustments.
The Acquisition Properties have a total of 559 guest rooms and were acquired for less than management's estimate of replacement cost. The Acquisition Properties include a 111-room Holiday Inn Express & Suites hotel located in Fort Myers, a 101-room Holiday Inn Express & Suites hotel located in Sarasota, a 100-room Staybridge Suites hotel located in Tampa, an 86-room Wingate by Wyndham hotel located in Tampa, an 81-room Courtyard by Marriott hotel located in Tampa and an 80-room Fairfield Inn & Suites hotel located in Orlando. The six hotels are strategically located in larger population centres on Florida's west coast and in central Florida, near major transportation corridors and close to a variety of manufacturing, military, information-technology, medical, education, sports and leisure demand generators.
AHIP funded the purchase price and the PIPs with cash on hand from its July 2016 unit offering and a new US$37.0 million commercial mortgage backed securities loan. The new mortgage is secured by five hotel properties, has a 10-year term, and has a fixed interest rate of 4.99%. The lender has also agreed to provide an FF&E reserve waiver for two years.
AHIP's portfolio now consists of 90 hotels totaling 8,052 guest rooms with 45 branded hotels totaling 4,263 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.
Logos, product and company names mentioned are the property of their respective owners.