VANCOUVER—American Hotel Income Properties REIT LP (AHIP) has acquired its 60th hotel—the newly built, 25-room Oak Tree Inn and Penny’s Diner in Brunswick, MD—from SunOne Developments Inc. The total purchase price of approximately $2.8 million plus customary closing costs and adjustments was funded by cash on hand offset by approximately $400,000 in mezzanine loans owed by SunOne to AHIP.
Robert O’Neill, CEO of AHIP, stated, “The Brunswick hotel is the 37th Oak Tree Inn hotel in our rail portfolio and the third such property built by SunOne and delivered to AHIP during 2014. The property is secured by a long-term railway contract that guarantees the majority of its available rooms. AHIP continues to explore a number of opportunities to expand its portfolio of Oak Tree Inn hotels, the largest and highest quality chain of crew lodging facilities presently serving the U.S. freight railway industry. Following the acquisition of the property and the completion of the previously announced acquisition of four hotels in North Carolina and Florida, AHIP’s portfolio will consist of 60 hotels comprised of 37 Oak Tree Inn hotels with 2,772 guestrooms, and 23 branded hotels with 2,347 guestrooms, franchised with leading national and international hotel brands.”
The property is located approximately 60 miles northwest of Washington, DC, and will be managed by TR Lodging Enterprises Inc., a wholly owned subsidiary of O’Neill Hotels & Resorts Ltd.