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03 March 2017

American Hotel Income Properties REIT LP Completes Bought Deal and Strategic Acquisition

On December 22, 2016, American Hotel Income Properties REIT LP (“AHIP”) completed a bought deal offering (the “Offering”) of limited partnership units (“Units”). The Offering raised gross proceeds of approximately $115.1 million through the issuance of 11,281,500 Units, which included 1,471,500 Units issued as a result of the underwriters electing to exercise the over-allotment option in full. The Offering was conducted through a syndicate of underwriters co-led by CIBC Capital Markets and National Bank Financial Inc. and included TD Securities Inc., Canaccord Genuity Corp., BMO Capital Markets, Scotiabank, Haywood Securities Inc., Industrial Alliance Securities Inc. and RBC Capital Markets.

On January 19, 2017, AHIP completed the strategic acquisition of three Embassy Suites by Hilton hotels located in proximity to Columbus, Cleveland and Cincinnati, Ohio for an aggregate purchase price of approximately US$124 million, including the expected cost of capital work on acquisition and brand-mandated property improvement plans. AHIP funded the purchase price for the portfolio using a combination of a portion of the net proceeds from the Offering and the proceeds from a new US$65.0 million commercial mortgage backed securities loan.

For the Offering and the acquisition, AHIP was represented by Farris, Vaughan, Wills & Murphy LLP, with a team led by Brian Canfield that included Duncan Reid, Robert Veitch and Sean Galloway.

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