American Hotel Income Properties REIT has reached a definitive agreement to sell its economy lodging portfolio, consisting of 45 hotel properties, to an affiliate of VCM Ltd. for $215.5 million.
The transaction marks the company’s first step in its new capital-recycling initiative, a long-term strategy to shift away from economy lodging properties and enhance its growing portfolio of premium-branded hotels, which consists of 67 hotels in larger secondary markets predominantly affiliated with the Marriott, Hilton and IHG hotel brands in the United States.
AHIP intends to redeploy the estimated $90 million in net proceeds from the sale, following closing costs and mortgage repayments, into new, income-generating investments that are better aligned with the premium-brand model.
"This is a transformational transaction for our business, and will simplify our corporate structure, cost base and investment story, while providing us with the opportunity to redeploy cap
