American Hotel Income Properties REIT LP (TSX: HOT.UN, HOT.U and HOT.DB.U) announced that Aimbridge Hospitality has entered into a binding agreement with ONE Lodging Management to assume the hotel management responsibilities for all of AHIP's 115 hotels. Aimbridge's assumption of management responsibilities is expected to take place by the end of April 2018, and the transaction is subject to customary closing conditions. There will be a transition period with ONE's leadership team to help ensure a smooth management transfer. The terms of the hotel management agreements will remain the same.
"This is a very positive strategic development for AHIP. As our portfolio has grown, and most recently with our major acquisitions in 2017, our need to partner with a leading external hotel management company that brings first-class experience and deep bench strength across the United States has become increasingly clear," said Ian McAuley, President, AHIP. "We believe Aimbridge's expertise will improve our hotel operating performance, facilitate continued growth through its extensive networks and create value for our unitholders."
"We expect that Aimbridge's economies of scale and purchasing power will provide tangible benefits for AHIP," commented Rob O'Neill, CEO, AHIP. "Its reputation as a fast-growing leader in the hotel management sector will also enhance the ability to attract and retain talented employees in our hotels."
Aimbridge is the largest independent hotel investment and management firm in the U.S., with a proven track record for delivering superior returns for its strategic partners in a variety of markets and economic cycles. Aimbridge provides property management, asset management, development, renovation and consulting services. Based in Dallas and with offices in Chicago and Puerto Rico, it currently owns and/or manages over 700 upscale, independent and branded hotels with approximately 90,000 rooms under management across the U.S. and the Caribbean
Michael Murphy, Chairman of AHIP's Board of Directors, added: "Aimbridge is a leading results-oriented hotel management company that has the scale and experience needed to drive incremental revenue and earnings accretion for AHIP going forward. We appreciate all that ONE has done to facilitate our growth in recent years and are now looking forward to a new chapter with Aimbridge."
In addition to the new partnership with Aimbridge, AHIP has reached an agreement with SunOne Developments, AHIP's existing development management partner, to terminate its exclusive hotel development agreement with SunOne concurrently with the completion of the transfer of ONE's responsibilities to Aimbridge. This termination is without cost to AHIP and will provide it with the flexibility to work with the most qualified and appropriate development partners available for new opportunities as they arise.
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