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AHIP of Canada Snares 12-Property Hotel Portfolio, Pays $191M
American Hotel Income Properties REIT LP (AHIP) entered into a definitive agreement with Starwood Capital Group to acquire a hospitality portfolio of properties in Minnesota, North Dakota, Pennsylvania and Texas. The Vancouver buyer will pay $191 million to buy the 12-property, 1,203-key portfolio. The deal was financed with proceeds from the $215.5 million sale of AHIP’s Economy Lodging portfolio to Vukota Capital Management.
Upon the deal’s December 2019 closing, the buyer will have acquired the hotels, which were built within the past five years, at an 8% cap rate. In addition, AHIP obtained a $105 million, 4% fixed-rate, five-year term loan, which is being secured by the properties.
“We’re very excited to complete a significant component of our 2019 capital recycling program by adding these 12 high-quality. . . select-service hotels to our portfolio. . . ,” said AHIP’s John O’Neill, CEO. “With no major capital renovations required, the hotels should perform without any income displacement.”
The portfolio consists of the following:
Pictured: Staybridge Suites, Midland, TX
For comments, questions or concerns, please contact Amy Sorter
- ◦Sale/Acquisition
