VANCOUVER, Dec. 3, 2014 /CNW/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) announced the grand opening of the new 25-room Oak Tree Inn hotel and 24-hour Penny's Diner in Brunswick, Maryland (the "Property"). The hotel was purpose built for a national U.S. railway client and is a further expansion of AHIP's strategy to be the largest and preferred provider of specialized accommodation facilities to the U.S. freight railway industry.
The Property was acquired on November 24, 2014 for US$2.8 million from SunOne Developments Inc. ("SunOne") pursuant to a Master Development Agreement.
The Property was officially opened yesterday with a ribbon cutting ceremony including the Mayor of Brunswick, Karin Tome, and John O'Neill, President of O'Neill Hotels & Resorts Ltd. Railway and union officials along with representatives from SunOne and hotel management also participated in the ceremony. The Property is secured by a 10-year railway contract that guarantees a majority of the room nights. The Property will operate under the Oak Tree Inn Brand with its slogan of "When Rest Matters" and offering of "Dark & Quiet" accommodation to both rail and non-rail customers.
The Property is located on a 2.1-acre site in the City of Brunswick within the rail and commercial support district. Brunswick is located approximately 60 miles northwest of Washington, D.C. The Property will be managed by TR Lodging Enterprises Inc., a wholly-owned subsidiary of O'Neill Hotels & Resorts Ltd. AHIP's Oak Tree Inn portfolio is currently comprised of 37 hotels totaling 2,772 guestrooms, 26 Penny's Diner restaurants, and AHIP's total hotel portfolio is currently comprised of 60 hotels totaling 5,119 guestrooms.
"Brunswick is an important location for AHIP as it further strengthens its relationship with a key railway client. This hotel is the third Oak Tree Inn hotel and Penny's Diner built by SunOne and delivered to AHIP this year" said Mr. Rob O'Neill, Chief Executive Officer. "I look forward to the acquisition of a newly built 110-room Oak Tree Inn hotel in Wellington, Kansas within the next 60 days. We continue to explore a number of new-build and conversion opportunities to expand our 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 for the week ended November 22, 2014 continues to highlight several positive trends in U.S. freight railway traffic. From November 2013 to November 2014, total U.S. freight rail traffic increased by 4.2% and intermodal volume increased by 5.2%. Year-over-year carloads of grain was up 13.5%, petroleum and petroleum products were up 13.2%, and non-metallic minerals were up 7.8% through November 2014.
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 construction, conversion opportunities and new railway lodging agreements 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 previously announced development property; 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 60 hotels including 37 Oak Tree Inn properties and 23 branded properties affiliated with leading national and international franchisors. 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.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
Image with caption: "December 2, 2014, grand opening of the new Oak Tree Inn hotel and Penny’s Diner in Brunswick, Maryland attended by city officials including Karin Tome, Mayor of Brunswick, and other key management, railway and union officials. (CNW Group/American Hotel Income Properties REIT LP)". Image available at: http://photos.newswire.ca/images/download/20141203_C6303_PHOTO_EN_8925.jpg
SOURCE: American Hotel Income Properties REIT LP
For further information: Andrew Greig, Investor Relations, American Hotel Income Properties REIT LP, Suite 1660 - 401 West Georgia Street, Vancouver, B.C. V6B 5A1, Tel: (604) 633-2857, Email: [email protected]