trending Market Intelligence /marketintelligence/en/news-insights/trending/9wJgXvrtZwGl6yfdIaREww2 content esgSubNav
In This List

American Hotel Income to acquire 4 hotels for US$47M

Blog

Corporate Credit Risk Trends in Developing Markets An Expected Credit Loss ECL Perspective

Blog

Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage

Blog

Corporate Credit Risk Trends in Developing Markets: A Loss Given Default (LGD) Perspective

Blog

Real Estate News & Analysis: May Edition


American Hotel Income to acquire 4 hotels for US$47M

American HotelIncome Properties REIT LP reached a deal to buy a portfolio of fourMarriott-branded, select-service hotels in the U.S. for $47.0 million.

The company is purchasing the properties at aweighted-average capitalization rate of approximately 9.0% on trailing 12months NOI. The transaction is expected to be immediately accretive to AFFO perunit.

The price excludes closing and post-acquisition adjustmentsand does not include $2.8 million for the completion of brand-mandatedproperty-improvement plans.

The hotels total 374 rooms and are located in Jacksonvilleand Lake City, Fla., and Chattanooga, Tenn. The properties include a 109-roomResidence Inn, two 89-room Fairfield Inn & Suites and an 87-room TownePlaceSuites.

American Hotel Income CEO Rob O'Neill said in a release thatthe transaction is in line with the company's strategy of owning high-quality,branded, select-service hotels in robust secondary markets. The portfolio willincrease the percentage of Marriott-branded hotel rooms to more than 40% of thecompany's branded portfolio.

American Hotel Income used cash on hand from the that it conducted inJuly and a new CMBS loan to fund the transaction. The new 10-year mortgage isexpected to have a fixed interest rate of under 4.50%.

The company expects to close this acquisition in lateOctober or early November.

The hotels will be managed by American Hotel Income's hotelmanager, Tower Rock Hotels & Resorts Inc., a subsidiary of O'Neill Hotels& Resorts Ltd.