An anonymous director reports

AMERICAN HOTEL INCOME PROPERTIES REIT LP ANNOUNCES COMPLETION OF CMBS REFINANCING AND REDUCTION OF SENIOR CREDIT FACILITY

American Hotel Income Properties REIT LP has completed a commercial mortgage-backed securities (CMBS) refinancing for five hotel properties with total gross proceeds of $43.0-million and the repayment of $38.4-million to the term loans comprising part of AHIP's senior credit facility governed by the sixth amendment.

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

AHIP completed the CMBs loan further to the previously announced term sheet with a major U.S. bank. Four of the five hotel properties secured by the CMBs loan were previously secured under the senior credit facility and the fifth hotel property was unencumbered prior to completion of this CMBs loan. This CMBs loan has a principal amount of $43.0-million, which includes an initial capital reserves contribution of approximately $3.0-million. The CMBs loan has a five-year term and bears interest at a fixed annual interest rate of 7.63 per cent; 100 per cent of the net proceeds of $38.4-million from the CMBs loan were used to repay a portion of the term loans outstanding under the senior credit facility. The net proceeds from this refinancing are lower than the previously announced estimate due to a reduction in the number of hotels being refinanced from seven to five.

The aggregate balance of the revolving credit facility and term loans under the senior credit facility has been reduced to $89.3-million as of the date of this news release from $133.2-million as of Dec. 3, 2024, as a result of the paydown following the completion of this new CMBs loan as well as the application of a portion of the net proceeds from previously announced hotel dispositions that closed in December, 2024. The total appraised value of the remaining 12 hotel properties secured under the senior credit facility is $182.2-million, which results in a current loan-to-value ratio of 49.0 per cent. The current maximum borrowing availability under the revolving credit facility and term loans is $104.3-million. AHIP is currently evaluating refinancing alternatives for the remaining balance under the senior credit facility and intends to complete this refinancing around the end of the first quarter of 2025.

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. AHIP's portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through licence agreements. AHIP's long-term objectives are to build on its proven record of successful investment, deliver monthly U.S.-dollar-denominated distributions to unitholders and generate value through the continued growth of its diversified hotel portfolio.

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