VANCOUVER — American Hotel Income Properties REIT LP (AHIP) has agreed to acquire two Embassy Suites by Hilton hotels located in Dallas, Texas and Tempe, Ariz. for an aggregate purchase price of approximately US$57.6 million.
“This investment is consistent with our stated growth strategy targeting acquisitions of branded, select-service hotels located in diverse markets in the U.S. that are proximate to significant demand generators such as airports, universities, sports venues, among others” says Rob O’Neill, CEO, AHIP. “This acquisition diversifies our portfolio by entering into two top-25 U.S. metropolitan markets, and introduces the strong Embassy Suites by Hilton brand to AHIP’s portfolio.”
Combined, the two properties consist of 529 guestrooms, which are being acquired for approximately US$109,000 per room. The 305-room Embassy Suites Dallas – DFW International Airport South hotel is located in Irving, Texas, which is two miles from Dallas/Fort Worth International Airport. The 224-room Embassy Suites Phoenix – Tempe hotel is located in Tempe, Arizona and is located minutes from Arizona State University and Phoenix Sky Harbor International Airport.
As part of the purchase price, the company will issue approximately US$17.4 million in new AHIP units to the vendors of the hotels. This issuance is subject to the approval of the Toronto Stock Exchange.
Embassy Suites by Hilton is an industry leading all-suite, select-service product that offers free cooked-to-order breakfasts and a complimentary evening reception.