AHIP to buy five railway hotels for $44.8M

American Hotel Income Properties REIT agreed to pay approximately $44.8 million to buy five railway hotels in four states.

The portfolio has long-term lodging contracts with an unidentified U.S. railway company that guarantees more than 80 percent of the available guestrooms.

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The AHIP real estate trust says it already has three hotels that are contracted with the same railway company.

The deal is expected to close within weeks, giving American Hotel a total of 6,798 guestrooms, with 3,467 of them at rail hotels and the remainder at branded hotels.

American Hotel REIT will fund the purchase with money raised through a bought deal financing that was completed Aug. 11 and additional debt.

The five additional railway hotels are in Belen, N.M; Gillette and Guernsey, Wyo.; Ravenna, Neb.; and Edgemont, S.D.