VANCOUVER — American Hotel Income Properties REIT LP (TSX:HOT.UN) has agreed to pay about US$44.8 million to buy five railway hotels in four states.
The portfolio has long-term lodging contracts with an unidentified U.S. railway company that guarantees more than 80 per cent of the available guest rooms.
The AHIP real estate trust says it already has three hotels that are contracted with the same railway company.
The deal is expected to close within weeks, giving American Hotel a total of 6,798 guest rooms, including 3,467 of them at rail hotels and the remainder at branded hotels.
American Hotel REIT will fund the purchase with money raised through a bought deal financing that was completed Aug. 11 and additional debt.
The five additional railway hotels are in Belen, N.M; Gillette and Guernsey, Wyo.; Ravenna, Neb.; and Edgemont, S.D.
