Canadian REIT Buys Eastern Seaboard Hotel Portfolio for $407M

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.