American Hotel Income Properties REIT LP Announces Extension of Its Revolving Credit Facility and Term Loans and Update on Property Dispositions

VANCOUVER, British Columbia, Dec. 03, 2024 (GLOBE NEWSWIRE) -- American Hotel Income Properties REIT LP (“AHIP”) (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB. V), today announced the extension of the maturity date for its revolving credit facility (the “RCF”) and certain term loans to June 2025 in accordance with the terms of the agreement governing such credit facilities (the “Sixth Amendment”) and provided an update on previously announced property dispositions.

All amounts presented in this news release are in United States dollars (“U.S. dollars”) unless otherwise indicated.

AHIP has satisfied the conditions in the Sixth Amendment for the extension of the maturity date for the RCF and term loans, which primary conditions include: (i) reduction of the aggregate maximum facility size to $148.2 million from and after December 3, 2024; (ii) obtaining updated appraisals for the Borrowing Base Properties (defined below) in order to determine the value of such properties for purposes of setting the maximum borrowing availability under the Sixth Amendment, which is set based on a maximum loan to value ratio of 67.5%; and (iii) compliance with the terms of the Sixth Amendment at the time of the extension, which includes among other things compliance with financial covenants including payout ratio and fixed charge coverage ratio. For further details, see a copy of the Sixth Amendment, which
has been filed under AHIP’s profile on SEDAR+ at www.sedarplus.com.

As of the date of the news release, the balance of the RCF and term loans under the Sixth Amendment has been reduced to $133.2 million. The total appraised value of the 16 hotel properties (the "Borrowing Base Properties") is $249.2 million, which results in a loan-to-value ratio of 53.4%. The current maximum borrowing availability under the RCF and term loans is $148.2 million. The appraised value of $249.2 million for the 16 Borrowing Base Properties (1,678 keys) is equivalent to $149 thousand per key, which is significantly higher than AHIP’s enterprise value per key⁽¹⁾ of $95 thousand, based on the U.S. dollar closing price of US$0.36 per unit on the TSX on December 2, 2024.

In November and December 2024, AHIP completed the previously announced dispositions of three hotel properties, in Kingsland, Georgia, Ocala, Florida, and Corpus Christi, Texas, for gross proceeds of $5.2 million, $7.7 million, and $10.3 million, respectively. A portion of the total net proceeds from these dispositions, $18.0 million, was used to partially repay the term loans governed by the Sixth Amendment in the same period.