American Hotel Income Properties REIT LP Files Final Prospectus and Upsizes Initial Public Offering to Cdn$87.0 Million

/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA./

VANCOUVER, Feb. 13, 2013 /CNW/ - American Hotel Income Properties REIT LP ("AHIP") announced today that it has filed, and obtained a receipt for, a final prospectus for the initial public offering of 8,700,000 limited partnership units ("Units") with the securities commissions of all provinces and territories in Canada.

The Units will be issued at a price of Cdn$10.00 per Unit (the "Offering Price") and are expected to provide unitholders with an annual yield of 9.0%. The gross proceeds of the offering are expected to be approximately Cdn$87.0 million.

"Due to strong investor demand, the transaction has been upsized from Cdn$75 million to Cdn$87 million" said Robert O'Neill, AHIP's Chief Executive Officer.  "This will help enable AHIP to pursue accretive hotel acquisitions in a timely manner and also provides additional working capital towards the growth of the existing properties".

The offering is being underwritten by a syndicate of underwriters co-led by Canaccord Genuity Corp. and National Bank Financial Inc. and including TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., Dundee Securities Ltd., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Burgeonvest Bick Securities Limited and Haywood Securities Inc. AHIP has granted the underwriters an over-allotment option, exercisable for a period of 30 days following the closing, to purchase up to an additional 1,305,000 Units at the Offering Price which, if exercised in full, would increase the total gross proceeds of the offering to approximately Cdn$100.1 million. The offering is expected to close on or about February 20, 2013.

The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the Units under the symbol "HOT.UN", subject to the fulfillment of all the requirements of the TSX.

AHIP intends to make monthly cash distributions to its unitholders at a rate of Cdn$0.075 per Unit, which are initially expected to provide an annual yield of 9.0%. The first cash distribution, which will be for the period from the date of closing of the offering to March 31, 2013, is expected to be paid on or about April 15, 2013 to unitholders of record on March 29, 2013, in an amount estimated to be Cdn$0.096 per Unit (assuming the closing occurs on February 20, 2013). Copies of the final prospectus are available under AHIP's profile on SEDAR at www.sedar.com.

These securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States of America without registration or an applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States of America.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects AHIP's current expectations regarding future events. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and similar terms and phrases and includes, but is not limited to, the amount of the expected monthly cash distributions and annual yield for the Units, the timing of the payment of the first cash distribution to unitholders, gross proceeds of AHIP's initial public offering, use of proceeds from the upsizing of the offering and the closing date of the offering. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond AHIP's control, that could cause actual results and events to differ materially from those that are disclosed in, or implied by, such forward-looking information. Such assumptions include, but are not limited to, a reasonably stable North American economy and stock market. Such risks and uncertainties include, but are not limited to, failure to complete the initial public offering of Units and related transactions and the factors discussed under "Risk Factors" in the final prospectus of AHIP dated February 12, 2013. The forward-looking information contained herein is made as of the date of this press release and, except as expressly required by applicable law, AHIP assumes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

About American Hotel Income Properties REIT LP

AHIP has been formed to indirectly own and acquire hotel properties in the United States. On closing of the initial public offering, AHIP will indirectly acquire a portfolio of 32 hotel properties located in 19 U.S. states.  AHIP's long-term objectives will be to: (i) generate stable and growing cash distributions from hotel properties substantially in the United States; (ii) enhance the value of its assets and maximize the long-term value of the hotel properties through active management; and (iii) expand its asset base and increase its Adjusted Funds From Operations ("AFFO") per Unit through an accretive acquisition program, participation in strategic development opportunities and improvements to the properties through targeted value-added capital expenditure programs.

Additional information relating to AHIP, including the final prospectus and other public filings, is available on SEDAR at www.sedar.com and will be available on AHIP's website at www.ahipreit.com.

SOURCE: American Hotel Income Properties REIT LP

Robert O'Neill (Chief Executive Officer) 
or
Robert Hibberd (Chief Financial Officer)
American Hotel Income Properties REIT LP
Suite 1690, 401 West Georgia Street
Vancouver, BC V6B 5A1
Tel: [phone]
www.ahipreit.com