Canada-based American Hotel Income Properties REIT (AHIP) has completed its previously announced acquisition of a portfolio of four branded hotel properties in North Carolina and Florida in a deal worth $41m.

The purchase price excludes $2.5m for brand mandated property improvement plans (PIPs).

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

According to AHIP, all properties are located along major US Interstate Highways consist of a total of 353 guestrooms and comprise three Marriott branded properties.

"We intend to capitalise on the ongoing growth in the US hotel industry and continue to utilise the availability of low-cost CMBS financing to fund a steady pipeline of acquisitions and provide stable distributions to our unitholders."

The properties include a 94-room Courtyard by Marriott hotel in Statesville, North Carolina, an 83-room Fairfield Inn & Suites hotel in Melbourne, Florida and a 96-room Fairfield Inn & Suites hotel in Titusville, Florida) and an 80-room Hampton Inn in Statesville, North Carolina, a Hilton branded property.

AHIP is said to have used a combination of cash on hand and a new $26.1m CMBS mortgage to fund the purchase price for the acquisition in addition to the financing of the PIPs.

See Also:

AHIP chief executive officer Robert O’Neill said: "These high-quality and well-maintained properties have been purchased at a price below our estimate of replacement cost in strong transportation-oriented markets with solid underlying fundamentals.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"We intend to capitalise on the ongoing growth in the US hotel industry and continue to utilise the availability of low-cost CMBS financing to fund a steady pipeline of acquisitions and provide stable distributions to our unitholders."

Tower Rock Hotels & Resorts, a wholly owned subsidiary of O’Neill Hotels & Resorts will manage the properties for AHIP.