VANCOUVER — American Hotel Income Properties REIT LP (AHIP) is set to acquire a portfolio of five railway lodging facilities for US$44.8 million.
The railway portfolio is secured by long-term lodging contracts with one of the U.S.’s top three railway companies, which guarantee more than 80 per cent of the available guestrooms for terms averaging nine years. AHIP currently owns three Oak Tree Inn hotels that are contracted with this railway company.
“This transaction will enable AHIP to unlock the embedded value of the five hotel properties through value-add programs and management efficiencies,” said Rob O’Neill, CEO of AHIP. “Upon completion of this transaction, AHIP will have more than doubled its locations with a key railway client and will be its sole dedicated crew lodging provider, building on our Oak Tree Inn’s tradition of providing ‘dark and quiet’ room stays for railway companies and their employees.”
The portfolio will be managed for AHIP by its exclusive hotel manager, TR Lodging Enterprises Inc., a wholly owned subsidiary of Tower Rock Hotels & Resorts Ltd. Tower Rock is a wholly owned subsidiary of O’Neill Hotels and Resorts Ltd.
This transaction is expected to close within the coming weeks.