VANCOUVER, BC--(Marketwired - March 16, 2017) - American Hotel Income Properties REIT LP ("AHIP") (TSX:HOT.UN) (AHOTF) announced today the sale of the 77-room Country Inn & Suites by Carlson hotel located in Norman, Oklahoma (the "Norman Property") for gross proceeds of US$4.5 million. The Norman Property was acquired in June 2015 as part of a larger portfolio acquisition, and, with the continued weakness in the Oklahoma market expected during 2017, AHIP strategically sold the Norman Property and will redeploy the proceeds to more productive uses. After repayment of the outstanding mortgage and transaction related costs, AHIP will realize net proceeds of approximately US$2.4 million. Following the sale of the Norman Property, AHIP now owns 95 hotel properties with 9,383 total guestrooms.
MARCH 2017 CASH DISTRIBUTION
AHIP also announced today a cash distribution of US$0.054 per limited partnership unit ("Unit") for the period of March 1, 2017 to March 31, 2017, which is equivalent to US$0.648 per Unit on an annualized basis. The distribution will be paid on April 14, 2017 to unitholders of record at the close of business on March 31, 2017.
The policy of AHIP is to pay cash distributions on or about the 15th day of each month to the unitholders of record on the last business day of the preceding month.
FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to: the expected continued weakness in the Oklahoma market in 2017, AHIP's intention to redeploy the proceeds from the sale of the Norman Property to more productive uses; the net proceeds to be realized by AHIP from the sale of the Norman Property; the timing for the record date and payment of the March 2017 cash distribution; and AHIP's long-term objectives.
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 continued strength of the U.S. lodging industry; and the value of the U.S. dollar. 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.