SOURCE: American Hotel Income Properties REIT LP

April 29, 2016 06:00 ET

American Hotel Income Properties REIT LP Announces US$7.5 Million Rail Portfolio Capital Investment Program and Commercial Marketing Strategy

VANCOUVER, BC--(Marketwired - April 29, 2016) -  American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN)(OTCQX: AHOTF) announced today the completion of the first phase of renovations at its 119-room Oak Tree Inn hotel located in Elko, Nevada (the "Elko Property") to convert 30 guest rooms into extended-stay rooms. This renovation is part of AHIP's strategic initiative to supplement its guaranteed rail crew revenue stream with additional commercial business at specifically targeted properties within its portfolio of Oak Tree Inn hotels (the "Rail Portfolio"). This strategy, which was implemented in 2015 and continues through 2016, has already generated significant increases in commercial occupied room-nights across the Rail Portfolio (up approximately 16% year-over-year to date) at average daily rates approximately 30% higher than contracted rail crew room rates.

The US$400,000 Elko Property renovation is expected to be completed on May 13, 2016 and is part of AHIP's 2016 US$7.5 million capital investment program for selected properties within the Rail Portfolio. This program is designed to enhance the guest experience at such properties and to drive additional revenues during periods of excess room capacity.

Mr. Rob O'Neill, Chief Executive Officer of AHIP, who was on hand in Elko when the first guest checked into a newly renovated extended-stay room last week, commented, "This renovation is an excellent example of AHIP's ability to execute upon its stated strategic plan to increase commercial revenues across the Rail Portfolio. Specifically, the renovation of the Elko Property achieves the optimal mix of guestroom types to meet the needs of both rail crew and commercial guest demand within the Elko market." Mr. O'Neill continued, "The renovated extended-stay rooms include cook-tops, microwave ovens, flat screen televisions, new furniture and upgraded bathrooms, all of which are designed to attract extended stay business and leisure travelers who enjoy the "Dark and Quiet" brand attributes of Oak Tree Inn hotels."

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: the renovation of the Elko Property and the expected completion timing therefor; AHIP's 2016 US$7.5 million capital investment program for selected properties within the Rail Portfolio; AHIP's strategic initiative to supplement its guaranteed rail crew revenue stream with additional commercial business; and the future performance of any Oak Tree Inn hotels.

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, the total final cost to renovate the Elko Property, the total cost and continued success of AHIP's strategic initiative for and related capital investments in certain properties within the Rail Portfolio, and expectations and assumptions related to the expected returns from the renovation of any Oak Tree Inn hotels. 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 17, 2016 and under "Risks and Uncertainties" in AHIP's Management's Discussion and Analysis dated March 7, 2016, 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 engaged in rail crew accommodation, transportation, and select-service lodging sectors. 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.

Contact Information

  • FOR FURTHER INFORMATION, PLEASE CONTACT:
    Andrew Greig
    Investor Relations
    American Hotel Income Properties REIT LP
    Suite 1660 - 401 West Georgia Street
    Vancouver, B.C. V6B 5A1
    Phone: 604-630-3134
    Email: agreig@ahipreit.com