VANCOUVER, Nov. 1, 2018 /CNW/ - American Hotel Income Properties REIT LP ("AHIP", the "Company") (TSX: HOT.UN,TSX: HOT.U,TSX: HOT.DB.U) is pleased to announce that it has completed approximately US$2.3 million of renovations at its Embassy Suites Cincinnati, located across the river from downtown Cincinnati in Covington, Kentucky.
"This is the second of three Embassy Suites hotels we are renovating this year, to modernize these properties and better cater to today's business and leisure travellers. In total, US$10.4 million of pre-funded capital has already been invested in, or allocated to, upgrading these three Embassy Suites hotels during 2018," said John O'Neill, CEO. "As some of the most notable and newly renovated hotels in our portfolio, we believe our Embassy Suites hotels are extremely well positioned to generate improved earnings and increased market share in the years ahead."
Mr. O'Neill continued: "Hotel renovations generally cause some guestroom displacement, so we're pleased to have our Embassy Suites Cincinnati property operating at its full capacity once again. This hotel now provides a more social and modern environment for our guests to enjoy – especially in the completely rebuilt atrium and lobby, which now showcases contemporary décor, soothing water features, a living wall feature, and all-new furniture situated to provide more intimate seating areas. This renovation also included the expansion of our lobby bar, where guests can relax and enjoy offerings from an expanded menu with the launch of the hotel's new NEAT Bourbon Bar and Restaurant."
Key aspects of the Embassy Suites Cincinnati renovation project included updates to all 227 guestrooms, where new bathrooms, TV units, furnishings and artwork were installed. In addition, significant renovations occurred in most common areas of the hotel. The atrium was completely rebuilt with a new bar, breakfast buffet, E'terie 24-hour market, communal seating areas and digital docking tables – where business travelers can work with colleagues within the comfort of a lounge area. The atrium bar now offers additional seating capacity, to better facilitate the expanded menu offering at the hotel, and the hotel's breakfast room was remodeled, to provide a larger buffet area and more elegant finishings. In addition, the corridors of the hotel were all updated with new carpeting, light fixtures and paint.
The Embassy Suites Columbus (in Dublin, Ohio) is currently undergoing US$2.9 million of similar renovation work, and is expected to be completed during the fourth quarter. US$5.2 million of renovations at the Embassy Suites DFW South (Irving, TX) were completed in August 2018. AHIP expects to begin similar renovation work at its Embassy Suites properties in Tempe (Phoenix), Arizona, and Independence (Cleveland), Ohio, in the future.
Most Embassy Suites by Hilton hotels are undergoing a significant design refresh. The redesign of atriums and the enhanced bar offering not only provides more options for guests to socialize within the hotel, but also provide hotel owners with opportunities to grow food and beverage related revenues.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN,TSX: HOT.U,TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties located substantially in the United States. AHIP currently has 113 hotels, and is engaged in growing its portfolio of premium branded, select-service hotels in larger secondary markets that have diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. The company's long-term objectives are to build on its proven track record of successful investment, deliver reliable and consistent 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 involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking information referred to in this news release includes, but is not limited to, statements with respect to: AHIP management's belief that AHIP's Embassy Suites hotels are extremely well positioned to generate improved earnings and increased market share in the years ahead; the expected timing of the completion of the renovation work on the Embassy Suites Columbus (in Dublin, Ohio); AHIP's AHIP expectation that it will begin similar renovation work at its Embassy Suites properties in Tempe (Phoenix), Arizona, and Independence (Cleveland), Ohio, in the future; and AHIP's long-term objectives.
Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: AHIP will realize the intended benefits of the renovations completed at the Embassy Suites Cincinnati as well as the renovations being completed at the Embassy Suites Columbus (in Dublin, Ohio) and those renovations contemplated for other Embassy Suites properties, including improved earnings and market share for such properties; renovations will be completed in accordance with the timing expected and on budget; AHIP will continue to benefit from its diversified portfolio of hotel properties and strong brand partners; a reasonably stable North American economy and stock market; the continued strength of the U.S. lodging industry; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; and the value of the U.S. dollar. 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 involves significant risks and uncertainties and should not be read as guarantees of future performance or results. Those risks and uncertainties include, among other things, risks related to the possibility that: AHIP will not realize the intended benefits of its recently completed, current and planned hotel renovations, including improved earnings and market share for such properties; AHIP's planned renovations may not be completed in accordance with the timing contemplated, on budget, or at all; and AHIP may not realize any of its long term objectives contemplated in this news release or otherwise. Management believes that the expectations reflected in the forward-looking information contained in this news release 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. Additional information about risks and uncertainties is contained in AHIP's MD&A dated August 8, 2018 and annual information form for the year ended December 31, 2017, copies of which are available on SEDAR at www.sedar.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 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.
SOURCE American Hotel Income Properties REIT LP
For further information: please contact: Jamie Kokoska, Director, Investor Relations, Phone: 604-670-6242, Email: [email protected]