HOT.UN 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 the completion of a commercial mortgage-backed securities (“CMBS”) refinancing for five hotel properties with total gross proceeds of $43.0 million (the “CMBS Loan”), and the repayment of $38.4 million to the term loans comprising part of AHIP’s senior credit facility (the “Senior Credit Facility”) governed by the Sixth Amendment.

All amounts presented in this news release are in United States dollars (“U.S. dollars”) unless otherwise indicated.

AHIP completed the CMBS Loan further to the previously announced term sheet with a major US bank. Four of the five hotel properties secured by the CMBS Loan were previously secured under the Senior Credit Facility and the fifth hotel property was unencumbered prior to completion of this CMBS Loan. This CMBS Loan has a principal amount of $43.0 million, which includes an initial capital reserves contribution of approximately $3.0 million. The CMBS Loan has a five-year term and bears interest at a fixed annual interest rate of 7.63%. 100% of the net proceeds of $38.4 million from the CMBS Loan were used to repay a portion of the term loans outstanding under the Senior Credit Facility. The net proceeds from this refinancing are lower than the previously announced estimate due to a reduction in the number of hotels being refinanced from seven to five.

The aggregate balance of the revolving credit facility and term loans under the Senior Credit Facility has been reduced to $89.3 million as of the date of this news release from $133.2 million as of December 3, 2024 as a result of the pay down following the completion of this new CMBS Loan as well as the application of a portion of the net proceeds from previously announced hotel dispositions that closed in December 2024. The total appraised value of the remaining 12 hotel properties (the "Borrowing Base Properties") secured under the Senior Credit Facility is $182.2 million, which results in a current loan-to-value ratio of 49.0%. The current maximum borrowing availability under the revolving credit facility and term loans is $104.3 million. AHIP is currently evaluating refinancing alternatives for the remaining balance under the Senior Credit Facility and intends to complete this refinancing around the end of the first quarter of 2025.

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.

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: AHIP evaluating refinancing alternatives for the remaining balance under the Senior Credit Facility and AHIP’s intention to complete this refinancing around the end of the first quarter of 2025; 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: AHIP will complete the refinancing of the remaining balance under the Senior Credit Facility on terms acceptable to AHIP and in accordance with the timing currently contemplated; 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, and divestiture of assets 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 be successful in refinancing the remaining balance under the Senior Credit Facility in accordance with the timing currently contemplated or at all; AHIP may not achieve its expected performance levels in 2025 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 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, 2024 and 2023, and AHIP’s annual information form for the year ended December 31, 2023, 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 contained herein 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