VANCOUVER, March 5, 2015 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) announced today the grand opening of the new 110-room Oak Tree Inn hotel in Wellington, Kansas (the "Property"). The hotel was purpose built for a national U.S. railway client and is AHIP's 38th Oak Tree Inn railway hotel. This hotel represents a further expansion of AHIP's strategy to be the largest and preferred provider of specialized accommodation facilities to the U.S. freight railway industry.
The Property was acquired on February 25, 2015 for US$7.4 million from SunOne Developments Inc. ("SunOne") pursuant to a Master Development Agreement.
The Property was officially opened earlier today with a ribbon cutting ceremony including Mr. Roger Stallbaumer, the Mayor of Wellington, Mr. John O'Neill, President of O'Neill Hotels & Resorts Ltd., Mr. Bill Burgess of Lodging Enterprises and Mr. Robert Hibberd, Executive Vice President of AHIP. Railway and union officials along with representatives from SunOne, hotel management and other key dignitaries also participated in the ceremony. The Property is secured by a 10-year railway contract that guarantees a majority of the available room nights. The Property will operate under the Oak Tree Inn Brand with its slogan of "When Rest Matters" and offering of "Dark & Quiet" accommodation to both rail and non-rail customers.
"Wellington is a strategic location for AHIP as it extends our 20-year relationship with a key railway client for another decade. This hotel is the fourth Oak Tree Inn delivered by SunOne over the past few months" said Mr. Rob O'Neill, Chief Executive Officer. "We continue to explore a number of new-build, expansion, and conversion opportunities to grow our portfolio of Oak Tree Inn hotels, the largest and highest quality chain of crew lodging facilities presently serving the U.S. freight railway industry."
U.S. FREIGHT RAIL CONTINUES TO POST HEALTHY GAINS INTO 2015
Rail Time Indicators for the month ended January 31, 2015 highlight several positive trends in U.S. freight railway traffic. From January 2014 to January 2015, total U.S. freight rail traffic increased by 5.6% and carloads excluding coal increased by 6.4%. Year-over-year carloads of grain increased by 10.4%, petroleum and petroleum products were up 6.9%, and coal carloads were up 4.4% through January 2015.
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements in this news release include, without limitation, the potential for future development projects, the new construction and the purchase and renovation of hotel properties, negotiations for new construction, expansion, and conversion opportunities, and new railway lodging agreements to provide accommodation.
Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: a reasonably stable North American economy and stock market; the needs of railway clients; and the ability to acquire additional hotels on an accretive basis. 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 reflects current expectations of AHIP's management regarding future events and operating performance as of the date of this news release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, without limitation, those factors that can be found under "Risk Factors" in AHIP's Annual Information Form dated March 26, 2014.
The forward-looking statements contained herein represent AHIP's expectations as of the date of this news release, and are subject to change after this date. AHIP assumes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
AHIP is a limited partnership formed under the Limited Partnerships Act (Ontario) to invest in hotel real estate properties located substantially in the United States and is engaged primarily in the railroad employee accommodation, contract-focused, transportation-oriented, and select-service lodging sectors. AHIP's properties are mostly located in secondary and tertiary markets in the United States in close proximity to railroads, airports, highway interchanges, and other transportation hubs and demand generators. AHIP currently owns 61 hotels totaling 5,229 guestrooms including 38 Oak Tree Inn properties and 23 branded properties affiliated with leading national and international franchisors. AHIP's long-term objectives are to: (i) generate stable and growing cash distributions from hotel properties substantially in the U.S.; (ii) enhance the value of its assets and maximize the long-term value of the hotel properties through active management; and (iii) expand its asset base and increase its AFFO per unit through an accretive acquisition program, participation in strategic development opportunities and improvements to its properties through targeted value-added capital expenditure programs.
Additional information relating to AHIP, including its other public filings, is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.
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SOURCE American Hotel Income Properties REIT LP