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The hotel investment world has changed. Secondary U.S. hotel markets now represent the greatest investment opportunities in the sector.
The U.S. hotel industry continues to achieve strong performance following years of record occupancy levels and profit margins. However, the country’s largest hotel markets are moderating due to the pressures of increasing competition, a stronger dollar and higher costs. As a result, traditionally overlooked secondary markets now represent the industry’s greatest opportunities for performance growth.
While insulated from several challenges facing hotels in U.S. gateway destinations, secondary hotel markets can often be more complex for investors to navigate. Success in these markets requires strong local knowledge, on-the-ground insights and the right combination of asset management and operations expertise to maximize returns and long-term real estate value.
AHIP is focused on and guided by the relentless pursuit of three primary business objectives:
- Generate stable and growing cash distributions from hotel properties substantially in the United States
- Enhance the value of its assets and maximize the long-term value of its hotel properties through active management; and
- Expand its asset base and increase its Adjusted Funds From Operations (“AFFO”) per Unit through an accretive acquisition program, participation in strategic development opportunities and improvements to the properties through targeted value-added capital expenditure programs
Guided by a disciplined investment strategy, American Hotel Income Properties REIT offers investors a unique vehicle to realize sustainable returns and growing value from premium branded, select-service hotels in secondary U.S. markets with diverse and stable demand from corporate and transient travelers as well as longstanding contractual customers.
AHIP sources potential acquisitions from brokers, major lodging companies, developers and consulting groups.
AHIP Units trade on the Toronto Stock Exchange under the ticker symbols HOT.UN (CDN$), HOT.U (US$), and HOT.DB.U (Debentures). Units also trade on the OTCQX International under the ticker symbol AHOTF.
AHIP pays a monthly cash distribution of US$0.054 per Unit or US$0.648 per Unit on an annualized basis. The monthly distributions will be paid on or about the 15th day following the end of each month. Prior to April 2016, AHIP paid a monthly cash distribution of Cdn$0.075 per Unit or Cdn$0.90 per Unit on an annualized basis.
Financial results are released in May (first quarter), August (second quarter), November (third quarter) and March (year-end). The annual general meeting is typically held in May.
The auditors of AHIP are KPMG LLP.