VANCOUVER, Nov. 12,
2014 /PRNewswire/ - American Hotel Income Properties
REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) announced today
the grand opening of the new 50-room Oak Tree Inn hotel and Penny's
Diner in Glendive, Montana (the
"Property").
The Property was acquired on October 28, 2014 for US$4.9 million from SunOne Developments Inc.
("SunOne") pursuant to the Master Development Agreement between
AHIP and SunOne. The Property opened yesterday with a ribbon
cutting ceremony involving city officials including the Mayor of
Glendive, railway officials,
SunOne and AHIP representatives. The Property is secured by a
10-year railway contract that guarantees a substantial majority of
its available room nights.
The Property is located on a two-acre site within
the city limits of Glendive, in a
rail and highway commercial support district. Glendive is
located approximately 150 miles northeast of Billings, Montana.
The Property will be managed by TR Lodging
Enterprises Inc., a wholly-owned subsidiary of O'Neill Hotels &
Resorts Ltd. Following the opening of the Property, AHIP's
portfolio of Oak Tree Inn properties is comprised of 36 hotels with
a total of 2,747 guestrooms, and 25 Penny's Diner restaurants.
"The Glendive
location is the second Oak Tree Inn hotel and Penny's Diner built
by SunOne and delivered to AHIP on budget in 2014" said Mr.
Rob O'Neill, Chief Executive
Officer. "We look forward to the delivery of two more new-build Oak
Tree Inn hotels totalling 135 guestrooms within the next 90
days. AHIP continues to explore a number of new-build and
conversion 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."
U.S. FREIGHT RAIL CONTINUES TO POST HEALTHY
GAINS
The monthly Rail Time Indicators released on
November 7, 2014 continues to
highlight several positive trends in U.S. freight railway traffic.
From October 2013 to October 2014, total U.S. freight rail carloads
increased by 4.4% and intermodal volume increased by 4.9%.
October's weekly average traffic of 276,350 containers and trailers
was the highest ever recorded. Year-over-year carloads of petroleum
and petroleum products are up 20.7%, carloads of crushed stone,
sand and gravel are up 10.4%, and coal carloads are up 3.9% through
October 2014.
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 construction schedule of previously announced
development projects, the potential for future development
projects, the new construction and the purchase and renovation of
hotel properties, negotiations for new build and conversion
opportunities and negotiations for new railway lodging contracts 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 completion of the other previously announced
development properties; the future performance of the Property; 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 and limited-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 55
hotels, 36 serve the U.S. rail industry pursuant to long-term
railway contracts and 19 are affiliated with leading national and
international hotel brands. 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
