AHOTF American Hotel Income Properties REIT LP (QX)

VANCOUVER, Aug. 8, 2013 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (Toronto Stock
Exchange: HOT.UN; OTCQX: AHOTF) today announced the release of its
financial results for the three and six months ended June 30, 2013.

2013 Q2 financial highlights and recent events

(All amounts expressed in US dollars unless otherwise indicated. Certain
operating results of AHIP presented for the six month period ended June
30, 2013 reflect only the operational results for the 130-day period
from the acquisition of Lodging Enterprises, LLC on February 20, 2013
to June 30, 2013.)

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  AHIP's current property portfolio was comprised of 32 hotels located in 19 states as at June 30, 2013, representing 2,564 available guest rooms under management of AHIP's external hotel manager, which experienced an
  83.6% and 82.5% occupancy rate for the three and six months ended June 30, 2013 respectively.
  
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  Cash balance was $24,120,535 (excluding restricted cash) as at June 30,
  2013.
  
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  Total revenues were $13,640,199 and $19,214,299 for the three and six months ended June 30, 2013, respectively, all of
  which was attributable to the operating results of Lodging Enterprises,
  LLC subsequent to the acquisition date of February 20, 2013.
  
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  Funds from operations ("FFO") were $2,606,034 ($0.250 per Unit) for the three months ended June 30, 2013.
  
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  Adjusted funds from operations ("AFFO") were $2,381,700 ($0.229 per
  Unit) for the three months ended June 30, 2013.
  
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  Net operating Income ("NOI") was $4,816,077 ($0.463 per Unit) for the three months ended June 30, 2013.
  
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  Distributions of $2,287,818 and $3,270,968 were declared during the
  three and six months ended June 30, 2013 respectively (both
  representing Cdn$0.90 per Unit on an annualized basis), of which
  $741,942 was included in accounts payable and accrued liabilities at
  June 30, 2013 and paid on July 15, 2013.
  
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  AFFO payout ratio was 96.1% (calculated as distributions declared divided by AFFO) for the three
  months ended June 30, 2013 which includes a significant amount of
  unutilized cash available for working capital and acquisitions.
  
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  Debt to gross book value was 43.4% (calculated as the principal debt outstanding of $71,455,954 divided by
  the sum of total assets of $166,819,916 less the deferred income tax
  asset of $1,994,524) at June 30, 2013.
  
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  On May 15, 2013, AHIP opened the newly-built 60-room Oak Tree Inn hotel
  located in Livonia, Louisiana, which followed closely after the January
  2013 opening of the new 56-room Oak Tree Inn hotel and 24-hour Penny's
  Diner located in Glenwood, Minnesota (both hotels were included in the
  32 initial properties as described in AHIP's final prospectus dated
  February 12, 2013).
  
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  On July 9, 2013, AHIP announced that its Board had approved a commitment
  with SunOne Developments Inc. to construct a 56-room oak Tree Inn Hotel
  and Penny's Diner located in Santa Teresa, New Mexico, secured by a
  long-term contract for all 56 rooms.
  
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  On July 19, 2013, a distribution of Cdn$0.075 per Unit was declared for
  the month of July 2013 (Cdn$0.90 per Unit on an annualized basis), for
  payment on August 15, 2013.
  
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  On July 22, 2013, AHIP announced that its Units commenced trading in the
  United States under the symbol "AHOTF" on the OTCQX International
  ("OTCQX") marketplace, a segment of the OTCQX marketplace reserved for
  non-U.S. companies that are listed on a qualified international
  exchange, undergo management reviews and provide their home country
  disclosure to U.S. investors.
  
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"Following our February 20, 2013 IPO and the smooth transition of the
management of our hotel assets to AHIP's external hotel manager, we
have experienced two successive quarters of stable operating results
that are in line with our expectations," said Mr. Rob O'Neill, Chief
Executive Officer. "In addition to providing for the growth of our
initial portfolio through an accretive acquisition program and
participation in strategic development opportunities, we have continued
to sharpen our focus on deploying AHIP's excess cash on an accretive
basis through the acquisition of additional high quality economy and
select service hotel assets in the US. Excluding the previously
announced 56-room $5.1 million property at Santa Teresa, New Mexico,
AHIP has four properties approximating $17 million under preliminary
agreement for addition to its rail portfolio. In addition to an
increasing volume of transactions coming onto the market, AHIP is
actively pursuing high quality select service hotel portfolios totaling
more than $100 million of acquisitions in its non-rail acquisition
pipeline."

Mr. O'Neill further commented, "With the strengthening of average daily
rates and occupancies to historic levels in the US Hotel Industry,
AHIP's properties are well-positioned to benefit from this trend.
Through accretive acquisitions and the expansion of our existing rail
portfolio, we intend to capitalize on the growth in the US Hotel
Industry and simultaneously utilize the substantial availability of low
interest CMBS financing to provide high returns of equity to our
stakeholders."

Conference Call

AHIP also announced the scheduling of its second quarter 2013 Financial
Results Conference Call. Rob O'Neill, CEO and Robert Hibberd, CFO of
AHIP will host a conference call at 8:00am (Eastern time) or 5:00am
(Pacific time), on Friday August 9, 2013, to review the financial
results and corporate developments for the three and six month period
ended June 30, 2013.

To participate in this conference call, please dial one of the following
numbers approximately ten minutes prior to the commencement of the
call, and ask to join the AHIP conference call.

Conference Call Replay

If you cannot participate on August 9, 2013, a replay of the conference
call will be available by dialing one of the following replay numbers.
You will be able to dial in and listen to the conference two hours
after the meeting end time, and the replay will be available until
August 16, 2013.

Please enter the replay PIN number 179687.

Non-IFRS Measures

Certain non-IFRS financial measures are included in this news release,
which include debt to gross book value, funds from operations ("FFO"),
adjusted funds from operations ("AFFO") and net operating income
("NOI"). These terms are not measures recognized under International
Financial Reporting Standards ("IFRS") and do not have standardized
meanings prescribed by IFRS. Real estate investment trusts often refer
to FFO, AFFO and NOI as supplemental measures of performance and debt
to gross book value as a supplemental measure of financial condition.

Debt to gross book value, FFO, AFFO and NOI should not be construed as
alternatives to measurements determined in accordance with IFRS as
indicators of AHIP's performance or financial condition. AHIP's method
of calculating debt, gross book value, FFO, AFFO and NOI may differ
from other issuers' methods and accordingly may not be comparable to
measures used by other issuers. For further information, please refer
to AHIP's Management's Discussion and Analysis dated August 8, 2013
which is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.

Forward-Looking Information

Certain statements in this press release may constitute
"forward-looking" information that involves known and unknown risks,
uncertainties and other factors, and it may cause actual results,
performance or achievements or industry results, to be materially
different from any future results, performance or achievements or
industry results expressed or implied by such forward-looking
information. Forward-looking information is identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would", and similar terms and phrases, including references to
assumptions.

Forward-looking information contained in this press release is based on
certain key expectations and assumptions made by AHIP, including,
without limitation, expectations and assumptions respecting the amount
of the expected monthly cash distributions and annual yield for the
Units and the timing to pay such cash distributions to unitholders, and
a reasonably stable North American economy and stock market. Although
the forward-looking information contained in this press release is
based upon what the 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 management regarding future events and
operating performance as of the date of this press 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. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking
information, and a description of these factors can be found under
"Risk Factors" in AHIP's final prospectus dated February 12, 2013 and
Management's Discussion and Analysis dated August 8, 2013, which are
available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.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 press 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

About American Hotel Income Properties REIT LP

AHIP is a limited partnership formed under the Limited Partnership Act
(Ontario) to invest in hotel real estate properties located
substantially in the United States and engaged primarily in the
railroad employee accommodation, transportation, and contract-focused
lodging sectors. AHIP's long-term objectives are to: (i) generate
stable and growing cash distributions from hotel properties
substantially in the US; (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 AHIP's interim
financial statements for the three and six months ended June 30, 2013,
AHIP's Management's Discussion and Analysis dated August 8, 2013, and
other public filings are available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.

SOURCE American Hotel Income Properties REIT LP