American Hotel Income Properties REIT LP Completes Rebranding of 46 Rail Hotels to Various Wyndham Brands
VANCOUVER, BC–(Marketwired – December 19, 2017) – American Hotel Income Properties REIT LP (“AHIP“) is pleased to confirm that its previously announced agreement with Wyndham Hotel Group to convert 46 hotels — including all of the hotels in its Rail Hotel portfolio — to Wyndham hotel brands, has now been completed. In total, 28 hotels have converted to Travelodge® hotels, 15 hotels have become Baymont Inn & Suites®, two properties are now Super 8® hotels, and one hotel will remain a Days Inn®. Each of these hotels can now be booked through Wyndham’s worldwide reservation network, and all converted hotels now provide the hospitality and guest experience expected from Wyndham brands, including earning and redeeming Wyndham Rewards points.
“This is a pivotal strategy for our Rail Hotel portfolio, as the enhanced brand awareness and greater market appeal of these properties will allow us to more effectively fill guestrooms not already utilized under our rail crew contracts,” said Ian McAuley, President, AHIP. “We believe this increased productive capacity will drive incremental revenue and earnings accretion and enhance the margin profile of this portfolio of hotels.”
Mr. McAuley added: “Going forward, the Rail Hotel portfolio will be known as our Economy Lodging hotel portfolio to better reflect the broader market appeal of these hotel properties.”
To celebrate this significant rebranding initiative, Mr. McAuley and Robert Pratt, President of ONE Lodging Management (AHIP’s exclusive hotel manager), and senior Wyndham executives, including Geoff Ballotti, President and CEO of Wyndham Hotel Group, unveiled two of the newly rebranded AHIP properties on Monday, December 18, 2017: the Baymont Inn & Suites, and the Travelodge in Wellington, Kansas.
“This has been the single largest transition of hotels to Wyndham’s platform, yet the onboarding of these 46 properties has been absolutely seamless,” said Mr. Ballotti. “We look forward to welcoming many more guests, and offering them access to our award-winning Wyndham Rewards program, through all of American Hotel Income Properties’ Wyndham branded hotels.”
While this branding strategy is expected to significantly strengthen the appeal of AHIP’s Economy Lodging hotel portfolio, the company continues to cater to the needs of its valued rail crew customers with the promise of a ‘dark and quiet’ sleeping experience. The agreement with Wyndham will have no impact on AHIP’s current or future rail crew contracts and no impact to the financial contributions AHIP generates from its rail crew contract business.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN) (TSX: HOT.U) (TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties located substantially in the United States. AHIP currently has 115 hotels, and is actively engaged in growing its portfolio of premium branded, select-service hotels in larger secondary markets that have diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. The company’s long-term objectives are to build on its proven track record of successful investment, deliver reliable and consistent U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio. More information is available at www.ahipreit.com.
Certain statements in this news release may constitute “forward-looking” information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “feel”, “intend”, “may”, “plan”, “predict”, “project”, “subject to”, “will”, “would”, and similar terms and phrases, including references to assumptions. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to: the belief that the rebranding will allow AHIP to more effectively fill guestrooms not already utilized under rail crew contracts and will drive incremental revenue and earnings accretion and enhance the margin profile of the Rail Hotel portfolio; and AHIP’s long-term objectives.
Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: a reasonably stable North American economy and stock market; the continued strength of the U.S. lodging industry; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; the accuracy of third party reports with respect to lodging industry data; and the value of the U.S. dollar. Although the forward-looking information contained in this news release is based on what AHIP’s management believes to be reasonable assumptions, AHIP cannot assure investors that actual results will be consistent with such information.
Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results. Those risks and uncertainties include, among other things, risks related to: general economic conditions; future growth potential; AHIP’s unit prices; liquidity; tax risk; tax laws currently in effect remaining unchanged; ability to access capital markets; competition for real property investments; environmental matters; the value of the U.S. dollar; and changes in legislation or regulations. Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with these forward-looking statements. Additional information about risks and uncertainties is contained in AHIP’s MD&A dated November 7, 2017 and annual information form for the year ended December 31, 2016, copies of which are available on SEDAR at www.sedar.com.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to AHIP. The forward-looking information is made as of the date of this news release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
For further information, please contact:
Director, Investor Relations