VANCOUVER, Dec. 3, 2014 /PRNewswire/ - American Hotel Income
Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF)
announced the grand opening of the new 25-room Oak Tree Inn hotel
and 24-hour Penny's Diner in Brunswick,
Maryland (the "Property"). The hotel was purpose
built for a national U.S. railway client and is a further expansion
of AHIP's strategy to be the largest and preferred provider of
specialized accommodation facilities to the U.S. freight railway
industry.
The Property was acquired on November 24,
2014 for US$2.8 million from
SunOne Developments Inc. ("SunOne") pursuant to a Master
Development Agreement.
The Property was officially opened yesterday with a ribbon
cutting ceremony including the Mayor of Brunswick, Karin
Tome, and John O'Neill,
President of O'Neill Hotels & Resorts Ltd. Railway and union
officials along with representatives from SunOne and hotel
management also participated in the ceremony. The Property is
secured by a 10-year railway contract that guarantees a majority of
the room nights. The Property will operate under the Oak Tree Inn
Brand with its slogan of "When Rest Matters" and offering of "Dark
& Quiet" accommodation to both rail and non-rail customers.
The Property is located on a 2.1-acre site in the City of Brunswick within the rail and
commercial support district. Brunswick is located
approximately 60 miles northwest of Washington, D.C. The Property will be managed
by TR Lodging Enterprises Inc., a wholly-owned subsidiary of
O'Neill Hotels & Resorts Ltd. AHIP's Oak Tree Inn
portfolio is currently comprised of 37 hotels totaling 2,772
guestrooms, 26 Penny's Diner restaurants, and AHIP's total hotel
portfolio is currently comprised of 60 hotels totaling 5,119
guestrooms.
"Brunswick is an important
location for AHIP as it further strengthens its relationship with a
key railway client. This hotel is the third Oak Tree Inn
hotel and Penny's Diner built by SunOne and delivered to AHIP this
year" said Mr. Rob O'Neill, Chief
Executive Officer. "I look forward to the acquisition of a newly
built 110-room Oak Tree Inn hotel in Wellington, Kansas within the next 60 days. We
continue to explore a number of new-build and conversion
opportunities to expand our portfolio of Oak Tree Inn hotels, the
largest and highest quality chain of crew lodging facilities
presently serving the U.S. freight railway industry."
U.S. FREIGHT RAIL CONTINUES TO POST HEALTHY GAINS
The monthly Rail Time Indicators for the week ended November 22, 2014 continues to highlight several
positive trends in U.S. freight railway traffic. From
November 2013 to November 2014, total U.S. freight rail traffic
increased by 4.2% and intermodal volume increased by 5.2%.
Year-over-year carloads of grain was up 13.5%, petroleum and
petroleum products were up 13.2%, and non-metallic minerals were up
7.8% through November 2014.
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, the construction schedule
of previously announced development projects, the potential for
future development projects, the new construction and the purchase
and renovation of hotel properties, negotiations for new
construction, conversion opportunities and new railway lodging
agreements to provide accommodation.
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 completion of the previously announced development
property; the future performance of the Property; the needs of
railway clients; and the ability to acquire additional hotels on an
accretive basis. 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 26, 2014.
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, contract-focused,
transportation-oriented, and select and limited-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 transportation hubs and demand generators.
AHIP currently owns 60 hotels including 37 Oak Tree Inn properties
and 23 branded properties affiliated with leading national and
international franchisors. 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 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
RELEASE.
SOURCE American Hotel Income Properties REIT LP