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).
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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.
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.
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.
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By GlobalData"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.
