Canadian REIT Pays $58M for 529-Key Portfolio
American Hotel Income Properties REIT LP added two more hotels to its portfolio, acquiring Embassy Suites by Hilton Hotels in Dallas, TX and Tempe, AZ. The REIT, headquartered in Vancouver, BC, Canada, paid $57.6 million ($109,000 per room) to another Canadian company, O’Neill Hotels & Resorts Ltd. The two hotels totaled 529 rooms.
The 305-room Embassy Suites by Hilton Dallas DFW Airport South is at 4650 W. Airport Fwy. in Irving, TX. AHIP assumed an existing $19 million mortgage on the property, which is interest-only until November 2019. The mortgage carries a 5.25% interest rate, and matures in October 2024.
The 224-room Embassy Suites by Hilton Phoenix Tempe, at 4400 S. Rural Rd., is near Arizona State University. AHIP took out a new, $13.5 million CMBS loan on the asset. The 10-year term loan has a fixed interest rate of 5.14%, interest only for the first three years, and a 30-year amortization.
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