hotel

AHIP acquires rail crew hotel in Nebraska

Tuesday, December 22, 2015

American Hotel Income Properties REIT (AHIP) has purchased a 133-room hotel in Lincoln, Nebraska that has a rail crew lodging contract with one of the largest railway companies in the United States, which guarantees 50 guestrooms per night.

The deal marks AHIP’s 80th income property acquisition.

AHIP owns ten hotels that currently service this railway company and is acquiring the “Lincoln Property” for about $3.9 million (U.S), with about $1.2 million for planned capital expenditures.

Planned upgrades include conversion of the property to an industry leading Oak Tree Inn rail crew hotel, including the addition of “Dark and Quiet” guestrooms, common area upgrades and new property management systems.

The Lincoln Property is being purchased for approximately $21,000 (U.S.) per guestroom, well below management’s estimate of replacement cost.

This transaction is expected to be finalized in January 2016.

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