The Deal Expands the REIT’s Presence across the U.S.

American Hotel Income Properties REIT acquired a portfolio of 12 well-maintained Premium Branded hotels. The deal for the 12 hotels, totaling 1,203 guestrooms, is $191 million.

The properties will bolster AHIP’s presence in Texas and the Midwestern part of the United States. Six of the new hotels are located in Texas. The remaining nones are in Michigan, Minnesota, North Dakota, and Pennsylvania.

The deal will bring AHIP’s total assets to 79 Premium Branded hotels, representing 8,887 total guestrooms. The company primarily licenses these properties to Marriott, Hilton, and IHG.

“We’re very excited to complete a significant component of our 2019 capital recycling program by adding these 12 high-quality, mostly all-suite focused, recently built select-service hotels to our portfolio of Premium Branded hotels,” said John O’Neill, CEO. “We’re especially pleased with the acquisition cap rate and [the] short closing timeline for this transaction, as the cash flow from these newer hotels will minimize the dilution from the sale of the Economy Lodging portfolio.”

American Hotel Income Properties REIT Deal

The 12 hotels in the deal include six Marriott branded properties. These six properties comprise two Courtyards, two Residence Inns, one Fairfield Inn & Suites and one TownePlace property.

The deal also includes five Hilton branded properties (three Home2 Suites, one Hampton Inn and one Homewood Suites). Finally, it includes one IHG branded property (a Staybridge Suites).

Eight of the twelve hotels are all-suite products. These brands complement AHIP’s existing hotel portfolio of select-service, premium-branded, upper-midscale to upper-upscale properties.  Aimbridge Hospitality – AHIP’s exclusive hotel manager, already manage the properties.

THE ACQUISITION PORTFOLIO

AHIP Sale

The company also announced it closed the sale of its Economy Lodging portfolio of 45 hotels to VCM for $215.5 million.

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