VANCOUVER — American Hotel Income Properties REIT LP (AHIP) announced today the completion of its strategic acquisition of three Embassy Suites by Hilton Hotels for an aggregate purchase price of approximately US$124 million.
The Acquisition Properties, which are the Embassy Suites by Hilton Columbus Dublin hotel, Embassy Suites by Hilton Cleveland Rockside hotel and Embassy Suites by Hilton Cincinnati Rivercenter hotel, comprised of 782 total guestrooms; reflecting a per-room purchase price of approximately US$150,000.
AHIP funded the purchase from its December 2016 bought deal offering and a new US$65 million commercial mortgage backed securities loan. Ian McAuley, president of AHIP, stated, “During the first three weeks of 2017, we have acquired five market-leading Embassy Suites by Hilton hotels with more than 1,300 guestrooms, for an aggregate investment of approximately US$187.3 million, or approximately US$143,000 per guestroom. That price per guestroom is well below our estimated replacement cost for hotels of this caliber within major metropolitan markets. AHIP’s ability to acquire high quality, upscale hotels at favourable per room prices supports our strategic objective of further diversifying the portfolio with larger institutional-grade properties, and augments the overall stability provided by our guaranteed rail crew lodging contracts.”
With the completion of this acquisition, AHIP now holds 96 hotels totaling 9,467 guestrooms, with 50 branded hotels totaling 5,574 guestrooms and 46 rail crew hotels totaling 3,893 guestrooms.
