VANCOUVER, April 2, 2018 /CNW/ – American Hotel Income Properties REIT LP (“AHIP“) (TSX: HOT.UN, HOT.U and HOT.DB.U) is pleased to announce that Aimbridge Hospitality (“Aimbridge“), a leading U.S.-based hotel management company, has entered into a binding agreement with ONE Lodging Management (“ONE“) to assume the hotel management responsibilities for all of AHIP’s 115 hotels. Aimbridge’s assumption of management responsibilities is expected to take place by the end of April 2018, and the transaction is subject to customary closing conditions. There will be a transition period with ONE’s leadership team to help ensure a smooth management transfer. The terms of the hotel management agreements will remain the same.
“This is a very positive strategic development for AHIP. As our portfolio has grown, and most recently with our major acquisitions in 2017, our need to partner with a leading external hotel management company that brings first-class experience and deep bench strength across the United States has become increasingly clear,” said Ian McAuley, President, AHIP. “We believe Aimbridge’s expertise will improve our hotel operating performance, facilitate continued growth through its extensive networks and create value for our unitholders.”
“We expect that Aimbridge’s economies of scale and purchasing power will provide tangible benefits for AHIP,” commented Rob O’Neill, CEO, AHIP. “Its reputation as a fast-growing leader in the hotel management sector will also enhance the ability to attract and retain talented employees in our hotels.”
Aimbridge is the largest independent hotel investment and management firm in the U.S., with a proven track record for delivering superior returns for its strategic partners in a variety of markets and economic cycles. Aimbridge provides property management, asset management, development, renovation and consulting services. Based in Dallas and with offices in Chicago and Puerto Rico, it currently owns and/or manages over 700 upscale, independent and branded hotels with approximately 90,000 rooms under management across the U.S. and the Caribbean. For more information on Aimbridge, please visit www.aimbridgehospitality.com.
Michael Murphy, Chairman of AHIP’s Board of Directors, added: “Aimbridge is a leading results-oriented hotel management company that has the scale and experience needed to drive incremental revenue and earnings accretion for AHIP going forward. We appreciate all that ONE has done to facilitate our growth in recent years and are now looking forward to a new chapter with Aimbridge.”
In addition to the new partnership with Aimbridge, AHIP has reached an agreement with SunOne Developments (“SunOne“), AHIP’s existing development management partner, to terminate its exclusive hotel development agreement (the “Development Agreement“) with SunOne concurrently with the completion of the transfer of ONE’s responsibilities to Aimbridge. This termination is without cost to AHIP and will provide it with the flexibility to work with the most qualified and appropriate development partners available for new opportunities as they arise.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN; HOT.U and 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 owns 115 hotels, and is actively engaged in growing its portfolio of premium branded, select-service hotels in larger secondary U.S. markets that have diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. AHIP’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.
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: the expected timing of the closing of the intended transaction between Aimbridge and ONE; the expectation that there will be a transition period with ONE’s leadership team to help ensure a smooth management transfer; the terms of the hotel management agreements will remain the same following completion of the transaction; the belief that Aimbridge’s expertise will improve AHIP’s operating performance including by driving incremental revenue and earnings accretion, facilitate continued growth through its extensive networks and create value for AHIP’s unitholders; the belief that Aimbridge’s economies of scale and purchasing power will provide tangible benefits for AHIP and that Aimbridge’s reputation as a fast-growing leader in the hotel management sector will enhance the ability to attract and retain talented employees in AHIP’s hotels; the termination of the Development Agreement with SunOne concurrent with the completion of the transfer of ONE’s responsibilities to Aimbridge and the expectation that such termination will provide AHIP with the flexibility to work with the most qualified and appropriate development partners available for new opportunities as they arise; 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: that the transaction between Aimbridge and ONE will complete at the time and on the terms currently expected and that the Development Agreement will be terminated at the same time; that AHIP will realize the expected benefits of both the transaction between Aimbridge and ONE and the termination of the Development Agreement as contemplated in this news release; 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; the accuracy of third party reports with respect to lodging industry data; 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 is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. 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 the transaction between Aimbridge and ONE and/or the termination of the Development Agreement may not be completed at the time or on the terms currently expected, or at all; AHIP is not a party to the transaction between Aimbridge and ONE, and thus has no ability to control whether or not this transaction completes or not; AHIP may not realize any or all of the expected benefits of the transaction between Aimbridge and ONE or the expected benefits of the termination of the Development Agreement, in each case as contemplated in this news release, or as otherwise contemplated by AHIP management; general economic conditions; future growth potential; AHIP’s unit prices; liquidity; tax risk; tax laws currently in effect remaining unchanged; ability to access capital markets; competition for real property investments; environmental matters; the value of the U.S. dollar; and changes in legislation or regulations. 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 March 6, 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
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