HOT.U American Hotel Income Properties REIT LP

American Hotel Income Properties REIT LP (“AHIP”) (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB. V), today announced increased liquidity under its revolving credit facility (the “RCF”) following the completion of new hotel appraisals obtained in accordance with the terms of AHIP’s previously announced amendment to its RCF completed on November 7, 2023 (the “Sixth Amendment”).

AHIP has now satisfied the conditions to extend the maturity of the RCF to December 3, 2024 with no paydown being required as a result of the property values set forth in the appraisals.

“We are pleased with the outcome of the independent appraisals. These appraisals recognize the significant value of our portfolio with per key values for the subject properties being significantly higher than the implied value per key based on the recent trading price of our units. Further, the incremental liquidity under the RCF allows us to patiently pursue the disposition of non-core assets, using proceeds to pay down debt and recycle capital into new acquisitions.” said Jonathan Korol, CEO.

The total appraised value of the 20 hotel properties (the "Borrowing Base Properties") is $286.2 million. This results in maximum borrowing availability under the RCF of $193.2 million, which is 67.5% of the total appraised value of the Borrowing Base Properties. Based on the current balance owing of $183.2 million, the available liquidity under the RCF (which had previously been reduced to zero pending the outcome of the appraisals) is currently $10.0 million.

The appraised value of $286.2 million for the 20 Borrowing Base Properties (2,070 keys) is equivalent to $138 thousand per key, which is significantly higher than AHIP’s enterprise value per key(1) of $96 thousand, based on the U.S. dollar closing price of US$0.49 per unit on the TSX on November 30, 2023.

For further details, see a copy of the Sixth Amendment, which has been filed under AHIP’s profile on SEDAR+ at www.sedarplus.com.

ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP’s portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through license agreements. AHIP’s long-term objectives are to build on its proven track record of successful investment, deliver monthly U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio. More information is available at www.ahipreit.com.

NON-IFRS AND OTHER FINANCIAL MEASURESManagement believes the following supplementary financial measures are relevant measures to monitor and evaluate AHIP’s financial and operating performance. These measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures are included to provide investors and management additional information and alternative methods for assessing AHIP’s financial and operating results and should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS.

Enterprise Value: is a supplementary financial measure and is calculated as (i) the sum of total debt obligations as reflected on the September 30, 2023 balance sheet, AHIP’s market capitalization (which is calculated as the U.S. dollar closing price of the units on the TSX as of November 30, 2023, multiplied by the total number of units issued and outstanding), and face value of series C preferred shares, less (ii) the amount of cash and cash equivalents reflected on the September 30, 2023 balance sheet.

Enterprise Value per Key: is a supplementary financial measure and is calculated as enterprise value divided by the total number of hotel keys/rooms in the portfolio.

NON-IFRS RECONCILIATION

(thousands of dollars)	September 30, 2023
Unrestricted cash – (D)	17,386
Term loans and revolving credit facility	636,282
Face value of convertible debenture	50,000
Total debt – (A)	686,282
Number of units outstanding – (a)	78,893
Unit price at November 30, 2023 – (b)	0.49
Market capitalization – (B) = (a) * (b)	38,658
Face value of Series C preferred shares – (C)	50,000
Total Capitalization = (A) + (B) + (C)	774,940
Total Enterprise Value = (A) + (B) + (C) – (D)	757,554
Number of keys	7,917
Enterprise Value per key	96

FORWARD-LOOKING INFORMATION

Certain statements in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate”, “believe”, “continue”, “expect”, “estimates”, “intend”, “may”, “outlook”, “objective”, “plans”, “should”, “will” and similar expressions suggesting future outcomes or events. Forward-looking information includes, but is not limited to, statements made or implied relating to the objectives of AHIP, AHIP’s strategies to achieve those objectives and AHIP’s beliefs, plans, estimates, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements with respect to: the incremental liquidity under the RCF allowing AHIP to patiently pursue the disposition of non-core assets, using proceeds to pay down debt and recycle capital into new acquisitions; and AHIP’s stated long-term objectives.

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 is based on a number of key expectations and assumptions made by AHIP, including, without limitation: inflation, labor shortages, and supply chain disruptions will negatively impact the U.S. economy, U.S. hotel industry and AHIP’s business; AHIP will continue to have sufficient funds to meet its financial obligations; AHIP’s strategies with respect to completion of capital projects, liquidity, addressing near-term debt maturities, divestiture of non-core assets and acquisitions will be successful and achieve their intended effects; AHIP will continue to have good relationships with its hotel brand partners; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP, including the ability to refinance maturing debt as it becomes due on terms acceptable to AHIP; AHIP’s future level of indebtedness and its future growth potential will remain consistent with AHIP’s current expectations; and AHIP will achieve its long term objectives.

Forward-looking information involves significant risks and uncertainties and should not be read as a guarantee of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking information, accordingly undue reliance should not be placed on such forward-looking information. Those risks and uncertainties include, among other things, risks related to: AHIP may not achieve its expected performance levels in 2023 and beyond; inflation, labor shortages, supply chain disruptions; AHIP’s brand partners may impose revised service standards and capital requirements which are adverse to AHIP; AHIP’s strategic initiatives with respect to liquidity, addressing near-term debt maturities and providing AHIP with financial stability may not be successful and may not achieve their intended outcomes; AHIP’s strategies for divesting assets to recycle proceeds into new acquisitions and reduce debt may not be successful; AHIP may not be successful in reducing its leverage; AHIP may not be able to refinance debt obligations as they become due or may do so on terms less favorable to AHIP than under AHIP’s existing loan agreements; general economic conditions and consumer confidence; the growth in the U.S. hotel and lodging industry; prices for AHIP’s units and its debentures; liquidity; tax risks; ability to access debt and capital markets; financing risks; changes in interest rates; the financial condition of, and AHIP’s relationships with, its external hotel manager and franchisors; real property risks, including environmental risks; the degree and nature of competition; ability to acquire accretive hotel investments; ability to integrate new hotels; environmental matters; increased geopolitical instability; and changes in legislation and AHIP may not achieve its long term objectives. Management believes that the expectations reflected in the forward-looking information are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with the forward-looking information contained herein. Additional information about risks and uncertainties is contained in AHIP’s management’s discussion and analysis for the three and nine months ended September 30, 2023 and 2022, and AHIP’s annual information form for the year ended December 31, 2022, copies of which are available on SEDAR+ at www.sedarplus.com.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to AHIP. The forward-looking information is made as of the date of this news release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

For additional information, please contact:

Investor Relationsir@ahipreit.com

(1) Non-IFRS and other financial measures. See “NON-IFRS AND OTHER FINANCIAL MEASURES” section of this news release.