VANCOUVER, BC, Sept. 1, 2020 – American Hotel Income Properties REIT LP (“AHIP” or the “Company”) (TSX: HOT.UN, HOT.U, and HOT.DB.U) announced today that it has closed the previously announced sale of its 86-room Wingate Tampa property for gross proceeds of US$7.5 million. AHIP has provided US$2.65 million in financing for the buyer, secured by a mortgage, which is repayable at the end of three years along with accrued interest. Net proceeds of the sale will be used to repay amounts outstanding under the Company’s revolving credit facility.
“We’re pleased to complete the sale of this non-core asset, which was nearing significant brand-mandated renovation commitments,” said John O’Neil, CEO. “We expect minimal FFO dilution and believe using the proceeds to reduce our debt is the most efficient use of capital at this time.”
Following this sale, AHIP now owns 78 Premium Branded select-service hotel properties (totaling 8,801 guestrooms) located in 22 states and 51 cities, including 24 extended-stay oriented hotels. Its portfolio now consists of 34 Marriott-branded hotels, 28 Hilton-branded hotels, 15 IHG-branded hotels and one Choice-branded hotel.
