American Hotel Income Properties REIT LP completes exercise of the over-allotment option

/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA./

VANCOUVER, March 1, 2013 /CNW/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN) announced today that the exercise of the remaining balance of the over-allotment option associated with its recent initial public offering has been completed, resulting in the issuance of an additional 435,000 limited partnership units ("Units") at a price of Cdn$10.00 per Unit for gross proceeds of Cdn$4.35 million.

This issuance completes the exercise of the over-allotment option in full, as described in AHIP's final prospectus dated February 12, 2013, and increases the total gross proceeds from AHIP's initial public offering to Cdn$100.1 million.

The offering was underwritten by a syndicate of underwriters co-led by Canaccord Genuity Corp. and National Bank Financial Inc., and included TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., Dundee Securities Ltd., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Burgeonvest Bick Securities Limited and Haywood Securities Inc.

The net proceeds of the offering and over-allotment have been used to indirectly acquire 32 hotel properties located in 19 U.S. states which focus on railroad employee accommodation, with the remainder to be used to acquire additional suitable hotel properties and for general working capital purposes.

AHIP's Units trade on the TSX under the symbol HOT.UN. There are currently 10,405,000 Units issued and outstanding.

These securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States of America without registration or an applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States of America.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects AHIP's current expectations regarding future events. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and similar terms and phrases and includes, but is not limited to, the intention to use remaining net proceeds from AHIP's initial public offering to acquire additional suitable hotel properties and for general working capital purposes. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond AHIP's control, that could cause actual results and events to differ materially from those that are disclosed in, or implied by, such forward-looking information. Such assumptions include, but are not limited to, a reasonably stable North American economy and stock market. Such risks and uncertainties include, but are not limited to, failure to complete the acquisition of additional suitable hotel properties and the factors discussed under "Risk Factors" in the final prospectus of AHIP dated February 12, 2013. The forward-looking information contained herein is made as of the date of this news release and, except as expressly required by applicable law, AHIP assumes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

About American Hotel Income Properties REIT LP

AHIP has been formed to indirectly own and acquire hotel properties in the United States. A portion of the net proceeds from its initial public offering have been used to indirectly acquire 32 hotel properties located in 19 U.S. states.  AHIP's long-term objectives are to: (i) generate stable and growing cash distributions from hotel properties substantially in the United States; (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 Adjusted Funds From Operations ("AFFO") per Unit through an accretive acquisition program, participation in strategic development opportunities and improvements to the properties through targeted value-added capital expenditure programs.

Additional information relating to AHIP, including the final prospectus and other public filings, is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.


SOURCE: American Hotel Income Properties REIT LP

For further information:

Robert O'Neill (Chief Executive Officer) 
or
Robert Hibberd (Chief Financial Officer)
American Hotel Income Properties REIT LP
Suite 1690, 401 West Georgia Street
Vancouver, BC V6B 5A1
Tel: (604) 684-0444
www.ahipreit.com

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American Hotel Income Properties REIT LP

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