VANCOUVER, March 5, 2015 /PRNewswire/ - American Hotel
Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX:
AHOTF) announced today the grand opening of the new 110-room Oak
Tree Inn hotel in Wellington,
Kansas (the "Property"). The hotel was purpose built
for a national U.S. railway client and is AHIP's 38th
Oak Tree Inn railway hotel. This hotel represents 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 February 25,
2015 for US$7.4 million from
SunOne Developments Inc. ("SunOne") pursuant to a Master
Development Agreement.
The Property was officially opened earlier today with a ribbon
cutting ceremony including Mr. Roger
Stallbaumer, the Mayor of Wellington, Mr. John
O'Neill, President of O'Neill Hotels & Resorts Ltd., Mr.
Bill Burgess of Lodging Enterprises
and Mr. Robert Hibberd, Executive
Vice President of AHIP. Railway and union officials along
with representatives from SunOne, hotel management and other key
dignitaries also participated in the ceremony. The Property is
secured by a 10-year railway contract that guarantees a majority of
the available 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.
"Wellington is a strategic
location for AHIP as it extends our 20-year relationship with a key
railway client for another decade. This hotel is the fourth Oak
Tree Inn delivered by SunOne over the past few months" said Mr.
Rob O'Neill, Chief Executive
Officer. "We continue to explore a number of new-build, expansion,
and conversion opportunities to grow 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 INTO
2015
Rail Time Indicators for the month ended January 31, 2015 highlight several positive
trends in U.S. freight railway traffic. From January 2014 to January
2015, total U.S. freight rail traffic increased by 5.6% and
carloads excluding coal increased by 6.4%. Year-over-year carloads
of grain increased by 10.4%, petroleum and petroleum products were
up 6.9%, and coal carloads were up 4.4% through January 2015.
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 potential for future
development projects, the new construction and the purchase and
renovation of hotel properties, negotiations for new construction,
expansion, and 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 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-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 61
hotels totaling 5,229 guestrooms including 38 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