An anonymous trustee reports

AMERICAN HOTEL INCOME PROPERTIES REIT LP ANNOUNCES EXTENSION OF ITS REVOLVING CREDIT FACILITY AND TERM LOANS AND UPDATE ON PROPERTY DISPOSITIONS

American Hotel Income Properties REIT LP has extended the maturity date for its revolving credit facility (the RCF) and certain term loans to June, 2025, in accordance with the terms of the agreement governing such credit facilities (the sixth amendment) and has provided an update on previously announced property dispositions.

All amounts presented in this news release are in United States dollars unless otherwise indicated.

AHIP has satisfied the conditions in the sixth amendment for the extension of the maturity date for the RCF and term loans, which primary conditions include: (i) reduction of the aggregate maximum facility size to $148.2-million from and after Dec. 3, 2024; (ii) obtaining updated appraisals for the borrowing base properties (defined below) in order to determine the value of such properties for purposes of setting the maximum borrowing availability under the sixth amendment, which is set based on a maximum loan to value ratio of 67.5 per cent; and (iii) compliance with the terms of the sixth amendment at the time of the extension, which includes among other things compliance with financial covenants including payout ratio and fixed charge coverage ratio. For further details, see a copy of the sixth amendment, which has been filed under American Hotel's profile on SEDAR+.

As of the date of the news release, the balance of the RCF and term loans under the sixth amendment has been reduced to $133.2-million. The total appraised value of the 16 hotel properties is $249.2-million, which results in a loan-to-value ratio of 53.4 per cent. The current maximum borrowing availability under the RCF and term loans is $148.2-million. The appraised value of $249.2-million for the 16 borrowing base properties (1,678 keys) is equivalent to $149,000 per key, which is significantly higher than American Hotel's enterprise value per key of $95,000, based on the United States-dollar closing price of 36 U.S. cents per unit on the Toronto Stock Exchange on Dec. 2, 2024.

In November and December, 2024, American Hotel completed the previously announced dispositions of three hotel properties, in Kingsland, Ga., Ocala, Fla., and Corpus Christi, Tex., for gross proceeds of $5.2-million, $7.7-million and $10.3-million, respectively. A portion of the total net proceeds from these dispositions, $18.0-million was used to partially repay the term loans governed by the sixth amendment in the same period.

As of the date of the news release, American Hotel had two hotel properties under purchase and sales agreements in Dallas, Tex., and Amarillo, Tex., for gross proceeds of $27.0-million and $2.6-million, respectively, with expected closing dates in December, 2024.

As previously announced, American Hotel signed a non-binding term sheet with a major United States bank to refinance certain borrowing base properties. As a result of the completed RCF extension and the additional time available to maturity, management is currently evaluating a number of refinancing options for the credit facilities governed by the sixth amendment, which include closing this refinancing in the near term. This refinancing, if completed, is expected to reduce the aggregate facility balance under the sixth amendment by approximately $60.0-million.

About American Hotel Income Properties REIT LP

American Hotel Income Properties is a limited partnership formed to invest in hotel real estate properties across the United States. American Hotel Income Properties' portfolio of premium-branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. American Hotel Income Properties hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through licence agreements.

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