In October 2023, American Hotel Income Properties REIT LP (TSX: HOT.UN, HOT.U, and HOT.DB.V) will make a cash distribution of $0.015 per limited partnership unit (a.k.a. “Unit”) in US dollars. This amount translates to $0.18 per Unit on an annualised basis. Unitholders of record at the close of business on October 31, 2023 will receive their distribution on November 15, 2023.
The limited partnership known as American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, was established with the purpose of making investments in hotel real estate properties all across the country. The premium branded, select-service hotels operated by AHIP are situated in secondary urban markets that enjoy a consistent and varied demand. Through licence agreements, AHIP’s hotels operate under brands that are associated with Marriott, Hilton, IHG, and Choice Hotels.
The Company’s long-term goals are to increase its track record of profitable investments, provide unitholders with monthly dividends denominated in US dollars, and create value by expanding its diverse hotel portfolio.
According to applicable securities regulations, certain of the comments in this news release might qualify as “forward-looking information” or “forward-looking statements.” The disclosure of forward-looking information carries a risk of error due to known and unknown risks, uncertainties, and other factors. As a result, the actual performance, accomplishments, or industry results could differ significantly from the projected or implied future performance, accomplishments, or industry results.
The use of words and phrases like “anticipate,” “believe,” “could,” “estimate,” “expect,” “feel,” “intend,” “may,” “plan,” “predict,” “project,” “subject to,” “will,” and “would,” along with similar expressions, including references to assumptions, are typically indicative of forward-looking information. The payment of the current distribution, AHIP’s intention to pay future cash distributions on or about the 15th day of each month to the unitholders of record on the last trading day of the preceding month, and AHIP’s stated long-term objectives are just a few of the specific forward-looking statements in this news release.
The following are some of the major assumptions and expectations that AHIP has made and that management believes to be reasonable: AHIP’s distribution policy will be sustainable; AHIP won’t be prevented from making distributions under the terms of any agreement, including its investor rights agreement and senior credit facility; AHIP’s business will perform in line with AHIP’s expectations; and AHIP will accomplish its long-term goals.
Since actual results could differ significantly from those stated or implied in such forward-looking statements, it is important to remember that these statements have a number of risks and uncertainties and should not be interpreted as guarantees of future performance or results. Among the risks and uncertainties are the following: the monthly cash payments are subject to the Board of Directors’ approval and may be reduced, postponed, or suspended at any moment at the Board’s discretion.
AHIP’s investor rights agreement restricts AHIP’s ability to pay dividends to its unitholders in specific situations, and AHIP’s senior credit facility has financial covenants that must be satisfied before distributions can be paid. The annual information form for the year ended December 31, 2022, and AHIP’s MD&A dated February 28, 2023, both include more details on risks and uncertainties.
This cautionary disclaimer expressly qualifies all of the forward-looking information included herein. Although management thinks the expectations represented in the forward-looking information are based on reasonable assumptions and information currently available, management is unable to guarantee that the information will match actual results. Except as may be required by applicable law, the forward-looking information is made as of the date of this news release, and AHIP assumes no duty to update or revise such information to reflect new events or circumstances.