ECONOMY LODGING HOTEL
Vancouver, BC (November 2, 2015)
American Hotel Income Properties REIT LP (“AHIP”) (TSX: HOT.UN; OTCQX: AHOTF) announced today three new 24-room expansions at existing high occupancy Oak Tree Inn hotels in North Platte, Nebraska, Hermiston, Oregon and Hearne, Texas (the “Expansions”). The Expansions are being constructed by SunOne Developments Inc. (“SunOne”) pursuant to the Master Development Agreement and will be acquired for an aggregate purchase price of US$6.4 million. The Expansions will be completed during the first half of 2016 and will be funded with cash on hand, mortgage debt and the issuance of AHIP Units. The Expansions are part of AHIP’s previously announced railway growth strategy of constructing additional guestrooms at existing, high occupancy Oak Tree Inn hotels that have excess land and strong market demand.