American Hotel Income Properties REIT agreed to acquire through its subsidiaries a portfolio of four branded hotel properties located in North Carolina and Florida for an aggregate purchase price of $41.0 million before customary closing and post-acquisition adjustments. The purchase price does not include a $2.5 million restricted cash reserve for the completion of brand mandated property improvement plans (PIPs).
The properties are being purchased at a weighted-average capitalization rate of 8.3 percent on trailing twelve months net operating income (after inclusion of all hotel management fees, brand franchise fees, a 4.0% FF&E reserve contribution and PIPs).
The acquired properties contain 353 total guestrooms. The four select-service hotel properties consist of three Marriott branded properties (a 94-room Courtyard hotel in Statesville, N.C., an 83-room Fairfield Inn and Suites in Melbourne, Fla., and a 96-room Fairfield Inn and Suites in Titusville, Fla.) and one Hilton branded property (an 80-room Hampton Inn in Statesville, N.C.).