Monday July 14th, 2014 - 12:00PM
VANCOUVER—American Hotel Income Properties REIT LP has completed the acquisition of a 107-room Springhill Suites by Marriott hotel located in Pinehurst, NC. This hotel is the fourth and final asset to be acquired of the portfolio of four previously announced properties, which are located in North Carolina and Georgia.
These four properties represent a total of 387 guestrooms located near transportation hubs and other major demand generators such as military bases, manufacturing facilities, medical centers and golf and leisure attractions, according to the company. The other three acquisition properties, acquired on July 3, 2014, included a 111-room Hampton Inn hotel, an 87-room Fairfield Inn & Suites hotel, both located in Asheboro, NC, and an 82-room Fairfield Inn & Suites hotel located in Kingsland, GA.
The properties were acquired for $30.5 million before customary closing and post-acquisition adjustments, and excludes $1.5 million for the completion of brand-mandated property improvement plans. The seller has contracted to perform the PIPs on a fixed-price basis. AHIP funded the purchase price for the acquisition properties using a combination of cash from AHIP's bought deal offering of units that closed on June 4, 2014, assumed CMBS debt on each of the Springhill Suites and the Hampton Inn properties and new CMBS debt on the two Fairfield Inn & Suites properties. The portfolio acquisition is immediately accretive to AHIP.
AHIP's hotel portfolio is now comprised of 47 hotels with an aggregate 3,959 guestrooms located across 22 U.S. states.
Rob O'Neill, AHIP's CEO, stated, "Since last year's initial public offering, AHIP has increased its guestroom count by 54%. Our total hotel portfolio (by total guestroom count) is now 32% branded, with seven Hilton-franchised hotels and five Marriott-franchised hotels benefitting from global distribution with leading hotel brands and some of the highest guest loyalty in the business. The building age and condition of our properties is very good, and the North Carolina and Georgia properties were acquired for less than management's estimate of replacement cost. AHIP is seeing a robust pipeline of accretive investment opportunities and plans to continue expanding its portfolio of 'best-in-class' select-service hotels in the near term, utilizing undeployed funds from its recent bought deal."
The properties are being managed for AHIP by its exclusive hotel manager, Tower Rock Hotels & Resorts Inc., a wholly owned subsidiary of O'Neill Hotels & Resorts Ltd.