Search
 

Canadian REIT Buys Eastern Seaboard Hotel Portfolio for $407M

WASHINGTON, DC--Many of the hotels being acquired are in the Baltimore area.

By Erika Morphy | erikamorphy | Updated on June 01, 2017

Fairfield Inn & Suites Baltimore/White Marsh. Photo by Marriott

WASHINGTON, DC–American Hotel Income Properties REIT, a Canadian REIT based in Vancouver, British Columbia, has acquired an 18-asset hotel portfolio located along the Eastern Seaboard for $407.4 million, or $186,000 per key. The cap rate is 7.9% on trailing twelve months of net operating income.

About The Portfolio

The properties [see chart below] are located in Maryland, New Jersey, New York, Connecticut and Pennsylvania. Their average age is about ten years and they are located in areas where the acquisition costs are lower than the replacement costs — which is one of the reasons why AHIP likes the portfolio, according to CEO Rob O’Neill.

“Additionally, these branded hotels are located within high barrier-to-entry secondary metropolitan markets in close proximity to major population centers such as Washington, D.C., Philadelphia, Baltimore and New York City,” O’Neill said in a prepared statement.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.