Annual Meeting of Unitholders – May 8, 2019 TSX: HOT.UN (CAD$) TSX: HOT.U (US$) TSX: HOT.DB.U (Debentures)
ForwardLookingStatements This corporate update is a summary and should be read together with the more detailed information, financial data and statements made available by American Hotel Income Properties REIT LP ( the “REIT”). This corporate update contains forward- looking statements which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities of the REIT. The words “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “projects”, “believes” or variations of such words and phrases or statem ents to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved” or “con tin ue” and similar expressions identify forward-looking statements. Some of the specific forward- looking statements in this corporate update include, but are not limited to, statements with respect to the ability of the REIT to execute its growth strategies; the expected tax treatment of the REIT and of the REIT’s distribution to Unitholders; the expected growth in the U.S. lodging industry and trends; and other considerations which are outlined in the REIT’s Annual Information Form dated March 29, 2018. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the REIT as of the date of this corporate update, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The REIT’s estimates, beliefs and assumptions, which may prove to be incorrect, include the various assumptions set forth herein, including, but not limited to the REIT’s future growth potential, results of operations, future prospects and opportunities, industry trends remaining unchanged, no change in legislative or regulatory matters, future levels of indebtedness, the tax laws as currently in effect remaining unchanged, the continual availability of capital and the current economic conditions remaining unchanged. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the “Risk Factors” in the REIT’s latest Management’s Discussion and Analysis. The forward - looking information contained herein is made as of May 8, 2019 and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise such information. Allfigurespresen ented edarein inU.S.doll llars,unless ssother erwise sestated ed.
American Hotel Income Properties REIT LP: Overview 112 hotel properties 11,523 guestrooms 67 Premium Branded Hotels; 45 45 Economy Lodging Hotels 100% of hotel assets are located in the United States 32 states; 89 cities 18 hotel brands operated through 5 brand families TSX listed: HOT.UN (CAD ticker) & HOT.U (USD ticker) 12%+ Yield 3
Hotels are about the guests they serve During 2018… We sold 3.2 million room nights Which means we had nearly 5 5 million guests sleeping at our hotels Had approx. 4,000 dedicated staff across our 112 112 hotels, serving these guests 40 restaurants and 72 72 breakfast rooms collectively service more than 2 million meals 4
A strategy focused on sustainable returns How our business and strategy has evolved 5
Brand diversity – Marriott, Hilton, IHG, Wyndham 67 Premium Branded hotels ; 7,684 guestrooms 45 Economy Lodging hotels ; 3,839 guestrooms 6
NOI by Segment Premium Branded hotels Economy Lodging hotels $113,613,000 $105,752,000 20% 21% $64,503,000 42% 80% 79% 58% 2016 2017 2018 7
Geographic diversity based on demand 112 hotels in 32 states and 89 cities totaling 11,523 guestrooms Consistent with AHIP’s investment strategy, all properties are strategically located within or near: ▪ Larger population centers ▪ Transportation corridors ▪ Demand generators 8
2018 and recent milestones In the last 12 months we have set a strong foundation for future growth, completing the first of several important hotel renovations, making key executive appointments and welcoming our new third-party hotel manager April 2019: March 2018: July 2018: February 2019: September 2018: AHIP announces Completed $1 million Completed Wyndham AHIP announces Completion of $4.2 million of appointment of Bruce renovation at Hilton rebranding of all renovations at the Staybridge Suites appointment of John Pittet as SVP Asset Garden Inn White Economy Lodging O’Neill as CEO Tampa East and the Residence Inn Management and COO Marsh (Baltimore) hotels Baltimore White Marsh February 2019: August 2018: April 2018: November 2018: AHIP announces Completion of $5.2 million Aimbridge appointed Completion of $2.3 million appointment of Chris renovation at Embassy AHIP’s new third -party renovation at the Embassy Cameron as Chief Investment Suites DFW South hotel manager Suites Cincinnati Officer (Irving, TX) (Covington, KY) 9
Aimbridge Hospitality: Benefits of a larger manager On April 25, 2018, Aimbridge Hospitality assumed all hotel management responsibilities Benefits of our new larger hotel management company: The largest independent U.S. hotel management company • Stronger purchasing power • Manage more than 800 upscale, • Deeper talent pools independent and branded hotel properties encompassing 100,000+ • More powerful technology and reporting systems hotel rooms • Aimbridge has long-standing and deep-seeded • Manage propertieswith hotel brands such as Marriott, Hilton, IHG, relationships with many of the brands AHIP operates Wyndham, and Choice hotels (all of hotels under AHIP’s hotel brands) • Manage more than 300 Marriott hotels for their clients • Managefor many other hotel REITs, as well as many well known institutional hotel investors 10
Renovations Program Updating some of our largest properties 11
Major hotel renovations and upgrades Total 2018 Capital Renovation Program Spend: Approx. $14.0 million LARGEST PROPERTY UPDATES: Embassy Suites, DFW South (Irving, TX) – approx. $5.2 million COMPLETED AUGUST 2018 Complete atrium and lobby renovation ▪ Modernized restaurant and lobby bar concept ▪ Elevator replacements and modernization ▪ Embassy Suites, Cincinnati RiverCenter (Covington, KY) – approx. $2.3 million COMPLETED NOVEMBER 2018 Complete atrium and lobby renovation ▪ Modernized restaurant and lobby bar concept ▪ Guestroom corridor updates ▪ Guestroom furniture /artwork updates ▪ Guestroom bathroom updates ▪ Updated public restrooms ▪ Embassy Suites, Columbus (OH) – approx. $2.9 million COMPLETED JANUARY 2019 Complete atrium and lobby renovation ▪ Modernized restaurant and lobby bar concept ▪ Updated public restrooms ▪ Renovated conference and boardrooms and pre-conference lobby ▪ Guestroom bathroom updates ▪ 12
Embassy Suites DFW Airport South (Dallas, TX) $5.2 million 13
Embassy Suites DFW (Irving, TX) 1. After Renovations: 1. New Atrium and lounge 2. New Lobby and Front Desk 3. Updated Restaurant 3 . 2. 14
Embassy Suites Cincinnati (Covington, KY) $2.3 million 15
Embassy Suites – Cincinnati upgrades and renovations 1. After Renovations: 1. Front Desk 2. New Atrium Bar 3. Breakfast Buffet 3 . 2. 2. 16
Embassy Suites Columbus $2.9 million 17
Embassy Suites – Columbus upgrades and renovations 1. 1. After Renovation: 1. New Atrium 2. New Lobby Restaurant/Bar 1. 3. Updated Breakfast Room 3 . 2. 3 . 18
Other hotel renovations completed since January 2018 Hilton Garden Inn White Marsh (Baltimore, MD) – approx. $1.0 million COMPLETED AUGUST 2018 ▪ Modernized guestrooms ▪ Renovated lobby and meeting rooms ▪ Updated pool area ▪ Residence Inn Baltimore White Marsh – approx. $1.9 million COMPLETED FEBRUARY 2019 ▪ Complete guestroom renovations – carpet, ▪ kitchens, bathrooms, lighting, window treatments, artwork Corridors renovated ▪ Staybridge Suites Tampa East – approx. $2.3 million COMPLETED FEBRUARY 2019 ▪ Updated exterior ▪ Complete lobby renovation ▪ Complete guestroom renovations – carpet, ▪ furniture, beds, lighting, window treatments Modernized breakfast buffet ▪ 19
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