Star Metro - American Hotel Income Properties REIT LP Announces Corporate Update

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

AHIP recently completed the previously disclosed sale of the Holiday Inn Express & Suites Fort Myers, Florida and refinanced the Embassy Suites Cincinnati RiverCenter in Covington, Kentucky (which property was previously unencumbered). Following the completion of these transactions, AHIP had an unrestricted cash balance as of September 24, 2026 of approximately $42 million compared to $21.5 million as at June 30, 2026.

In September 2026, AHIP signed purchase and sale agreements ("PSAs") for the sale of five individual hotels, with one additional hotel expected to be under PSA within the next ten days. These six hotels are in New Jersey, Pennsylvania, Connecticut and Florida and are in addition to the three hotels in Florida and Tennessee (two hotels) previously disclosed to be under PSA. The total gross proceeds for the sale of these six hotels are estimated to be approximately $95 million, if completed. The majority of these sales are targeted to close by the end of the fourth quarter of 2026, subject to the satisfaction of the conditions set forth in the respective PSAs. The net proceeds from the sale of these six hotels together with AHIP's cash on hand are intended to support the repayment of the $25.0 million outstanding on the Series C Preferred Shares and the $49.7 million outstanding on the 6.0% unsecured subordinated convertible debentures which mature on December 31, 2026 (the "Debentures").

AHIP has made progress since the Strategic Review was announced on May 4, 2026, but has not yet established a definitive timeline to complete the Strategic Review or any potential transaction. There can be no assurance that the Strategic Review will result in any transaction or initiative or, if a transaction or initiative is undertaken, as to the terms or timing of such a transaction or initiative. AHIP does not currently intend to disclose further developments in connection with or arising from the Strategic Review or in connection with any transaction, initiative or related matter, unless and until it is determined that disclosure is necessary or appropriate.

ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP

American Hotel Income Properties REIT LP (TSX:HOT.UN)(TSX: HOT.U,)(TSX:HOT.DB.V), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, and IHG Hotels through license agreements.

More information is available at www.ahipreit.com.

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information within the meaning of applicable securities laws. Forward looking information generally can be identified by words such as "anticipate", "believe", "continue", "expect", "estimates", "intend", "may", "outlook", "objective", "plans", "should", "will" and similar expressions suggesting future outcomes or events. Forward-looking information includes, but is not limited to, statements made or implied relating to the objectives of AHIP, AHIP's strategies to achieve those objectives and AHIP's beliefs, plans, estimates, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements with respect to: AHIP's planned property dispositions, including the expected terms and timing thereof and the financial impact thereof on AHIP (including the estimated amount and uses of the proceeds from such dispositions, including to support the repayment of the outstanding Series C Preferred Shares and the outstanding Debentures); and the Strategic Review and the possibility of a transaction or initiative involving AHIP.

Although AHIP believes that the expectations reflected in the forward-looking information contained in this news release are reasonable, AHIP can give no assurance that these expectations will prove to be correct. The estimates and assumptions, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth in this news release as well as the following: AHIP will complete its currently planned divestitures on the terms currently contemplated and in accordance with the timing currently contemplated; AHIP will generate sufficient capital to be in a position to address the remaining Series C Shares and the Debentures; AHIP will continue in operation as a going concern for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business.

Forward-looking information involves significant risks and uncertainties and should not be read as a guarantee of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking information, accordingly undue reliance should not be placed on such forward-looking information. Those risks and uncertainties include, among other things, risks related to: AHIP may not complete a transaction or initiative that creates or improves unitholder value as result of the Strategic Review or otherwise; AHIP may not complete its currently planned divestures on the terms currently contemplated or in accordance with the timing currently contemplated, or at all; AHIP may not generate sufficient capital to be in a position to address the remaining Series C Shares and the Debentures in 2026, or at all; if AHIP's strategies to address its balance sheet obligations are not successful, AHIP may not be able to continue as a going concern. Additional information about risks and uncertainties is contained in this news release and in AHIP's most recently filed AIF and management's discussion and analysis, copies of which are available on SEDAR+ at www.sedarplus.ca.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to AHIP. The forward-looking information is made as of the date of this news release. AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

For additional information, please contact: Investor Relations [email protected]

SOURCE: American Hotel Income Properties REIT LP

View the original press release on ACCESS Newswire

S.Lapointe--SMC