VANCOUVER, June 16, 2015 /PRNewswire/ - American Hotel
Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX:
AHOTF) announced today that it has executed with one of its
national railway customers a new two year railway lodging contract
for 50 rooms per night at its Holiday Inn Oklahoma City Airport
hotel.
AHIP acquired the 147-room Holiday Inn Oklahoma City Airport
hotel in November 2014. This
new railway contract will commence in July
2015 and will secure 34% of the hotel's total available
rooms. AHIP expects this agreement to be immediately
accretive to adjusted funds from operations ("AFFO") per
unit and should increase hotel occupancy by approximately
24%. It is also expected to benefit the adjacent Staybridge
Suites Oklahoma City Airport hotel, also owned by AHIP, with any
overflow guests.
Rob O'Neill, AHIP's Chief
Executive Officer, commented, "I am delighted to announce the first
instance of AHIP's railway lodging business providing guaranteed
occupancy to one of our branded hotels." Mr. O'Neill continued,
"Securing a multiyear railway contract is one of several rail
initiatives we are actively pursuing to address our rail customers'
increasing demand for rail employee accommodations in select
locations. The minimum-occupancy guarantees in the new
contract are expected to decrease the seasonality of revenues and
improve the predictability of cash flows at our Holiday Inn
Oklahoma City Airport hotel. In addition, the rail guests will
generate incidental revenues through the utilization of food and
beverage outlets within the hotel. AHIP intends to continue
to look for opportunities to implement rail contracts across its
branded hotel portfolio to augment existing occupancy."
Forward-Looking Information
Certain statements contained in this news release may constitute
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as
"anticipate", "plan", "expect", "may", "will", "intend", "should",
and similar expressions. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Forward-looking statements in this
news release include, without limitation, references to future
railway agreements with branded hotels as well as impacts on
expected occupancy levels, accretion to AFFO per unit, seasonality
of revenues, expected cash flows and incidental revenues.
Forward-looking information is based on a number of key
expectations and assumptions made by AHIP, including, without
limitation: a reasonably stable North American economy and stock
market; the continued strength of the U.S. lodging industry; and
the addition of rail rooms in the future. Although the
forward-looking information contained in this news release is based
on what AHIP's management believes to be reasonable assumptions,
AHIP cannot assure investors that actual results will be consistent
with such information.
Forward-looking information reflects current expectations of
AHIP's management regarding future events and operating performance
as of the date of this news release. Such information involves
significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, without limitation, those factors that can be found under
"Risk Factors" in AHIP's Annual Information Form dated March 27, 2015 and under "Risks and
Uncertainties" in AHIP's Management's Discussion and Analysis dated
May 13, 2015, both of which are
available on SEDAR at www.sedar.com.
The forward-looking statements contained herein represent AHIP's
expectations as of the date of this news release, and are subject
to change after this date. AHIP assumes no obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
AHIP is a limited partnership formed under the Limited
Partnerships Act (Ontario) to
invest in hotel real estate properties located substantially in
the United States and is engaged
primarily in the railroad employee accommodation,
transportation-oriented, and select-service lodging sectors. AHIP's
properties are mostly located in secondary and tertiary markets in
the United States in close
proximity to railroads, airports, highway interchanges, and other
demand generators. AHIP owns hotels serving the U.S. rail industry
pursuant to long-term railway contracts and hotels affiliated with
leading national and international hotel brands. AHIP's long-term
objectives are to: (i) generate stable and growing cash
distributions from hotel properties substantially in the U.S.; (ii)
enhance the value of its assets and maximize the long-term value of
the hotel properties through active management; and (iii) expand
its asset base and increase its AFFO per unit through an accretive
acquisition program, participation in strategic development
opportunities and improvements to its properties through targeted
value-added capital expenditure programs.
ADDITIONAL INFORMATION
Additional information relating to AHIP, including its other
public filings, is available on SEDAR at www.sedar.com and on
AHIP's website at www.ahipreit.com.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS NEWS
RELEASE.
SOURCE American Hotel Income Properties REIT LP