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Vancouver REIT buys 18 American hotels in US$407 million deal

American Hotel Income Properties REIT LP now has 113 properties in its portfolio, totalling 11,570 guestrooms
Tanya Commisso
marriott hotel
This Courtyard by Marriott Wall at Monmouth Shores Corporate Park in Wall Township, New Jersey is part of the Eastern Seaboard Portfolio acquired by AHIP.
 
A Vancouver-based real estate investment trust has acquired a portfolio of hotels in the Northeastern U.S., totaling 2,187 units. 
 
American Hotel Income Properties REIT LP (AHIP) bought 18 premium hotels across Maryland, New Jersey, New York, Connecticut and Pennsylvania in what is referred to collectively as the Eastern Seaboard Portfolio. The REIT acquired the portfolio for US$407.4 million, or $612.9 million Canadian. The guestrooms were sold at approximately US$186,000 per room. 
 
Ten hotels are Marriott-branded and eight are Hilton-braded. 
 
AHIP has acquired 23 hotels so far this year, bringing its entire portfolio to 113 properties with 11,570 guest rooms. 
 
"We have continued to add value through the ongoing growth of our diversified hotel portfolio, which has delivered reliable and consistent cash flows to our unitholders," said Ian McAuley, president of AHIP. "Since AHIP's public listing in 2013, we have delivered consistent yields for investors of approximately 8.0%, while significantly improving the quality of the portfolio."
 
The Eastern Seaboard Portfolio will be managed by ONE Lodging Management Inc., a subsidiary of Vancouver-based O’Neill Hotels & Resorts Inc.