VANCOUVER — American Hotel Income Properties REIT LP (AHIP) has renewed contracts with its largest railway customer.
The renewal includes 15 Oak Tree Inn hotels located in the U.S., accounting for approximately 40 per cent of AHIP’s total railway hotel guestrooms. The agreement also guarantees minimum occupancy at 2015 levels over a term of five years.
“We are pleased that all 15 new contracts have higher daily rates accompanying the minimum room guarantees, and now also include built-in cost of living escalators that will provide stable and rising cash flows over the coming years,” said Rob O’Neill, CEO of AHIP. “An extensive US$1.8 million property improvement program has also begun at these 15 hotels, including significant room upgrades.”