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Investor Presentation TSX: HOT.UN (CAD$) TSX: HOT.U (US$) TSX: HOT.DB.U (Debentures) February 2019 (Q3 2018 Information) Forwardlookingstatements This corporate update is a summary and should be read together with the more detailed


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Investor Presentation

TSX: HOT.UN (CAD$) TSX: HOT.U (US$) TSX: HOT.DB.U (Debentures)

February 2019 (Q3 2018 Information)

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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 statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved” or “continue” 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 27,

  • 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 November 9, 2018 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. Courtyard Wall Township, New Jersey

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Company overview

113 Hotels; 11,549Guestrooms¹ 33States; 90 Cities 18 hotel brands operated through 5brand families 12%+ Yieldas of December 6, 2018

American Hotel Income Properties REIT LP (“AHIP”)

▪ Invests in high-quality premium branded hotel properties, primarily in the Upper-midscale to Upper- Upscale chains, including such brands as Residence Inn, Hampton Inn and Suites and Holiday Inn Express ▪ Hotels are located across the U.S. , primarily in secondary markets (such as Cincinnati or Baltimore) that benefit from multiple demand generators (ie. business parks, sports arenas, medical centres) ▪ In addition, AHIP’s Economy Lodging portfolio provides accommodations for guests in more remote locations and caters to the lodging needs of railway crews along major rail lines.

Properties were purchased below replacement cost, with an average 8% cap rate using long-term fixed-rate debt that averages 4.64%.

¹ Q3 2018 figures. Subsequent to Q3 2018 AHIP sold its Comfort, WV Economy Lodging property

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Noteworthy hotel properties

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Embassy Suites Dallas Fort Worth (Airport South) Embassy Suites Cleveland Springhill Suites Arundel Mills (Baltimore)

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Noteworthy hotel properties

5

Embassy Suites Cincinnati Embassy Suites Columbus (Dublin) Embassy Suites Phoenix Tempe

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Summary of key information

6

Canadian dollar TSX ticker HOT.UN (trades in CDN, monthly distributions paid in USD) US dollar TSX ticker HOT.U (trades in USD, monthly distributions paid in USD) Units outstanding 78,062,194 Convertible Debentures HOT.DB.U (5.0% paid semi-annually in USD) Market Cap C$567 million (As at Feb. 1, 2019) Enterprise Value C$1.5 billion (As at Feb 1, 2019) Debt to Gross Book Value 53.4% Debt to EBITDA 7.8x Interest Coverage Ratio 2.9x Monthly USD cash distribution US$0.054 Expected 2018 Payout Ratio Close to 100%

(temporarily impacted by AHIP’s decision to renovate several of its largest hotels)

Consensus 2019 Payout Ratio: 94% Target Run-rate Payout Ratio

  • Approx. 85%
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A strategy focused on sustainable returns

7

How our business and strategy has evolved

Courtyard Wall Township, New Jersey

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Strategy focused on long-term returns

Shift to higher-quality, premium branded hotels

  • Focused specifically on growing
  • ur portfolio of premium

branded, select-service hotels in the secondary markets (US cities

  • utside of the top 25 markets)
  • Hotels in these regions often

benefit from multiple demand generators

  • Diverse, recognized hotel brands

Capital Recycling

  • Prepared to sell assets that no

longer meet our long-term strategy

  • Consistently presented with
  • pportunities to expand our

premium branded portfolio 8

Focused Asset Management

  • Expanded asset management

team continuously evaluates hotel performance and market positioning, to ensure our new third-party hotel manager delivers the best possible performance AHIP’s strategy is focused on generating sustainable, growing cash flows from proven hotel properties, to deliver long-term value to our unitholders through monthly distributions and stock appreciation. Key to achieving this are three core activities:

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Quality branded hotel portfolio

AHIP has strategically grown its portfolio since its IPO with a focus on:

  • Increasing the quality and size of the assets that it owns,
  • Purchasing hotels in larger markets, and,
  • Geographically diversifying its asset base

9

HOTEL PORTFOLIO EVOLUTION Portfolio composition (by NOI) RevPAR

$46.15¹ $74.66

ADR

$56.08¹ $97.21

Portfolio size

32 hotels / 2,565 rooms 113 hotels / 11,549 rooms

Average # of rooms per hotels

80 102

Average value per hotel

$4.0 million $12.5 million

For period: IPO to Dec. 31, 2013 Nine months ended Sept. 30, 2018

¹ As disclosed at IPO

Premium Branded Economy Lodging (ie. “Rail hotels”)

100% Economy Lodging 80.4% 19.6% More than 80% of NOI is now generated through Premium Branded hotels!

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Brand diversity

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World-class brand partners with global distribution, effective brand segmentation, guest loyalty programs and premier system standards

67 Premium Branded hotels; 7,684 guestrooms 46 Economy Lodging hotels; 3,865 guestrooms¹

During Q4 2017, AHIP rebranded 46 of our Economy Lodging Hotels under Wyndham hotel brands, to drive increased brand awareness and transient (non-rail crew) guest traffic

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Geographic diversity based on demand

Consistent with AHIP’s investment strategy, all properties are strategically located within or near: ▪ Larger population centers ▪ Transportation corridors ▪ Demand generators

113 hotels in 91 cities totaling 11,549 guestrooms¹

Economy Lodging Hotels Premium Branded Hotels

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¹ As of Q3 2018. Subsequent to Q3 2018, AHIP sold a property in Comfort, WV.

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SLIDE 12

SOLD:

Ravenna, NE, Economy Lodging Hotel May 14, 2018

Capital recycling

Selling hotels that no longer fit our long-term strategy; Using capital to reinvest in other properties

SOLD:

Livonia (West), LA, Economy Lodging Hotel August 23, 2018

(Our Livonia East property continues to serve our guests)

AHIP continuously reviews property performance and fit within our portfolio, and considers all reasonable and accretive offers to purchase our properties.

SOLD:

Comfort, WV, Economy Lodging Hotel

  • Nov. 28, 2018

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Focused asset management

Continuous review and oversight of each hotel property ensures our properties as a best positioned as possible

  • Asset management (AM) team members are each

assigned a collection of properties to monitor, forecast and continuously review

  • We are in contact with our hotel manager to

determine what is working well or not working

  • Ensures that we pinpoint activities that drive

performance and benchmark them for other properties, while also ensuring activities that hurt hotel performance are quickly dealt with

Modeling and forecasting returns from hotel renovations (PIPs) help us best allocate capital

  • AM team members routinely review the condition
  • f our hotels, their market position, and forecasted

PIP requirements to ensure we allocate our capital in a way that generates the highest ROIC, while meeting our hotel brand standards. AHIP’s asset management team is responsible for overseeing

  • ur third-party hotel manager –Aimbridge Hospitality
  • Participate in weekly property update calls
  • Review revenue management strategies to ensure they are driving
  • ptimal results for our properties
  • Continuously advocate for expense reduction wherever possible,

through shared resources, group buying, productivity

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Aimbridge Hospitality: Benefits of a larger manager

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On April 26, 2018, Aimbridge Hospitality assumed all hotel management responsibilities

  • Have not had any disruption to our hotel operations
  • All of ONE’s hotel staff at AHIP’s hotels and all ONE operational

management have been retained by Aimbridge, and as such, all institutional knowledge will remain

  • In consistent communication with Aimbridge executives
  • Stronger purchasing power
  • Deeper talent pools
  • More powerful technology and reporting systems
  • Aimbridge has long-standing and deep-seeded relationships with

many of the brands AHIP operates hotels under

  • Aimbridge currently manages 97 hotels in markets where AHIP’s
  • perate (57 hotels near Premium Branded AHIP hotels and 40 near

Economy Lodging AHIP hotels). This creates the potential for shared resources and management talent.

Expect benefits will materialize over the next several quarters

One of the largest independent U.S. hotel management companies

  • Manage more than 800 upscale,

independent and branded hotel properties encompassing 100,000+ hotel rooms

  • Work with hotel brands such as

Marriott, Hilton, IHG, Wyndham, and Choice hotels (all of AHIP’s hotel brands)

  • Manage more than 300 Marriott

hotels for their clients

  • Work for many other hotel REITs, as

well as many well known institutional hotel investors

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Financial Performance

2017 Annual TTM as at Q3 2018

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Embassy Suites Cincinnati – Lobby Renovation

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89.2% 83.4% 90.9%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Q3 2018

Seasonality to the AFFO Payout Ratio

28.6% 30.2% 29.6%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Q3 2018

Seasonality to the EBITDA Margin

Seasonal impacts on performance

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Hotels REITs are more seasonal than other real estate sectors AHIP is best reviewed and evaluated on an annual basis to account for seasonal changes

  • Revenue and EBITDA margin is typically much higher in Q2 and Q3 than in Q1 and Q4, therefore AFFO payout ratio also

sees fluctuations (due to stable monthly distributions and seasonally affected AFFO)

PEAKS VALLEYS

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12 month trailing figures (as at quarter end)

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$154,372 $164,768 $168,927 $173,515 $195,106 $220,031 $265,834 $303,710 $323,051 $343,510 $341,228 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

TTM Revenue (‘000)

$30,893 $33,773 $34,873 $36,576 $40,969 $44,997 $54,280 $58,566 $58,322 $61,883 $58,932 10,000 20,000 30,000 40,000 50,000 60,000 70,000

TTM FFO (‘000)

$0.87 $0.76 0.00 0.20 0.40 0.60 0.80 1.00 Q3 2017 Q3 2018

TTM M FFO per Unit

$45,038 $49,040 $50,691 $52,355 $58,543 $65,759 $81,398 $89,761 $93,265 $100,971 $97,003 20,000 40,000 60,000 80,000 100,000 120,000

TTM EBITDA (‘000)

$26,912 $29,498 $30,475 $31,967 $35,676 $38,797 $46,576 $49,979 $50,066 $56,458 $53,900 10,000 20,000 30,000 40,000 50,000 60,000

TTM AFFO (‘000)

$0.75 $0.67 0.00 0.20 0.40 0.60 0.80 Q3 2017 Q3 2018

TTM M AFFO per Unit

* Trailing 12 month metrics are based on performance as reported at each quarter end

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Fiscal year performance (USD$)

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ANNUAL RESULTS 2017 17

12 months ended December 31, 2017

2016 16

12 months ended December 31, 2016

Number of Guestrooms 11,708 8,156 Revenue (‘000) $303,710 $173,515 EBITDA (‘000) $89,761 $52,355 EBITDA Margin 29.6% 30.2% FFO per diluted unit $0.82 $0.92 AFFO per diluted unit $0.70 $0.80 AFFO Payout Ratio 90.9% 83.4% Debt/Gross Book Value 53.9% 44.0% WA Loan Interest Rate 4.61% 4.59% WA Loan Term 7.59 years 7.70 years

Wingate Tampa, Florida Residence Inn Mount Laurel, NJ

AHIP is best reviewed on an Annual or trailing 12-month basis, to account for seasonal differences that affect quarter results

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Well positioned for today’s economic environment

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Evaluating our external environment

Springhill Suites Arundel Mills (Baltimore)

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U.S. hotel sector forecasted for continued growth

STR1 forecasts for 2018 and 2019 demonstrate a robust hotel sector

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¹ STR Forecasts provided in October 2018 for total United States hotel sector

STR Forecasts for U.S. hotel sector1 Metric 2018 Forecast 2019 Forecast Supply 2.0% 1.9% Demand 2.6% 2.1% Occupancy 0.6% 0.2% ADR 2.6% 2.4% RevPAR 3.2% 2.6%

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Well positioned for changing economic conditions

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Daily guestroom rates can change daily, to mitigate any inflationary risk

▪ Unlike other REIT sectors where revenue is derived from long-term leases, hotel REITs provide a natural inflationary hedge due to the daily pricing adjustments of guestroom rates. ▪ Useful in offsetting cost pressures in inflationary times ▪ Yield management allows our hotel manager to price rooms inventory according to daily changes in demand and room rate trends

Hilton Garden Inn White Marsh

Secondary market locations are better positioned for recessionary periods

▪ AHIP hotels are located in secondary markets that often benefit from multiple demand generators (such as hospitals and universities), as opposed to tourism-led markets (which often experience the most performance volatility) ▪ Business travellers often downgrade from luxury hotels to mid-scale hotels (such as AHIP’s hotels) in challenging economic periods ▪ As hotels are operating businesses, AHIP’s hotel manager has the ability to adjust more variable expenses compared to other real estate sectors

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Debt structure shields AHIP from rising interest rates

Leveraged to growing economy, not interest rates Long-term, fixed rate debt structure shields AHIP from short-term changes in interest rates

▪ 96% of AHIP’s debt is fixed rate ▪ AHIP has an average term remaining on its debt of 6.7 years, and a weighted average loan face interest rate of 4.64% ▪ No significant debt maturities until June 2022

$0 $50 $100 $150 $200 $250 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

DEBT MATURITY LADDER (millions)

Mortgages Convertible Debentures

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Driving stronger performance

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What are we doing to strengthen

  • ur business?

Residence Inn, Ocala, Florida

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Driving long-term returns and cash flow

Driving RevPAR (Revenue per available room) growth through:

Revenue management (yield management)

Hotel upgrades and renovations (PIP projects)

Enhanced marketing and distribution (through brand partners such as Wyndham Hotel Group)

Investing in our hotels to make them best in class and drive higher market share and demand

  • Approx. $14 million of pre-funded hotel upgrades/renovations (referred to as Property Improvement Plans, or PIPs)

have been completed during 2018 for Premium branded hotels

Planning and design is largely complete for six other hotels, now scheduled to begin renovations in Q1 or Q2 2019

During 2019, AHIP expects to invest $25 million of capital in additional Premium Branded hotel renovations

By the end of 2020, 85% of AHIP’s Premium Branded hotels; and more than half of AHIP’s Economy Lodging hotels, will have been recently renovated

Implemented an Internal asset management team

Overseeing and enhancing the performance of the hotel portfolio to drive stronger returns for unitholders

Working closely with AHIP’s external hotel manager, the Asset Management team monitors the supply and demand dynamics of specific hotel markets to ensure that each property is consistently well positioned to maximize profitability

Developing long-term strategic plans for each hotel property, including all hotel renovations and capital recycling

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Recent hotel renovations and upgrades

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

Renovated pre-conference lobby

Embassy Suites, Columbus (OH) –

  • approx. $2.9 million

EXPECTED COMPLETION Q4 2018

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

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Final renovated atrium and lobby bar at DFW South Renovated Trattoria restaurant at DFW South

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Embassy Suites – Cincinnati upgrades and renovations

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After Renovations:

  • 1. Front Desk
  • 2. New Atrium Bar
  • 3. Breakfast Buffet

1. 2.

3.

Prior to Renovations:

  • 1. Front Desk
  • 2. Breakfast Buffet

1. 2.

BEFORE AFTER

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Embassy Suites – Columbus upgrades and renovations

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Concept for Renovated:

  • 1. Front Desk
  • 2. Breakfast Buffet
  • 3. New “E’Terie Market”

1. 2.

3.

BEFORE:

  • 1. Front Desk
  • 2. Breakfast Buffet

1. 2.

BEFORE AFTER

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Announced John O’Neill as new CEO

  • John is an accomplished hospitality professional, with
  • ver 30 years of experience in hotel investment,

development and management.

  • He was previously CEO of ONE Lodging – AHIP’s

former third party hotel manager, and oversaw management of AHIP’s hotels as the portfolio grew from 32 to 115 hotels in six years.

  • Mr. O’Neill’s selection followed an extensive executive

recruiting search. AHIP’s board unanimously voted for John in the final selection of CEO.

  • As CEO, he will be work with the board to fulfill and

set AHIP’s strategic objectives, and, with the assistance of our asset management team, ensure we have the optimal mix of properties to drive strong, long-term results for AHIP’s unitholders.

  • John’s appointment follows the announced

retirement of AHIP’s current CEO, who will remain on AHIP’s board as a valued Director. 28

John O’Neill was appointed CEO beginning October 1, 2018

John O’Neill

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Experienced Management Team

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John O’Neill

Chief Executive Officer

Azim Lalani

Chief Financial Officer

Anne Yu

Vice President, Finance

▪ Hotel industry veteran, with 30 years of experience in hotel investment, development and management ▪ Co-Founder of American Hotel Income Properties REIT LP ▪ Previously CEO of ONE Lodging – AHIP’s former external hotel manager ▪ More than 20 years of experience in financial reporting, corporate finance, operations, business valuation, taxation and risk management ▪ Senior Vice President of Operations for two TSX-listed commercial REITs ▪ Vice President of Real Estate and Risk Management at SilverBirch Hotels & Resorts ▪ Audit Manager at KPMG ▪ More than 15 years experience in financial reporting, internal controls, corporate finance and Canadian and US tax. ▪ Manager at Pricewaterhouse Coopers ▪ Controller and Manager of Financial Reporting of Sterling Shoes Inc. ▪ Controller of Ventyx Software Solutions Inc. (formerly MDSI Mobile Data Solutions Inc.)

Executive team has over 65years of collective real estate investing experience

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Well positioned

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Focused on sustainable returns

  • Increasing the quality and size of the assets we own,
  • Purchasing hotels in larger markets, and,
  • Geographically diversifying our asset base

Well positioned for today’s economic environment

  • Debt structure shields AHIP from rising interest rates
  • Hotel sector is well positioned for inflationary times
  • Strong U.S. Economic backdrop

TAKING ACTION TO DRIVE STRONGER PERFORMANCE

Driving RevPAR growth through:

  • Revenue management (yield management)
  • Hotel upgrades and renovations (PIP projects)
  • Enhanced marketing and distribution (through brand

partners such as Wyndham Hotel Group)

Investing in our hotels to make them best in class and drive higher market share and demand

  • Approximately $14 million of pre-funded hotel upgrades/renovations (referred to as Property Improvement Plans, or PIPs) have been

completed during 2018 for Premium branded hotels.

  • Planning and design is largely complete for another $6 mil of renovations now scheduled to begin construction in 2019 (included in

the $25 mil to be spent on renovations

Implemented an Internal asset management team New (larger) hotel manager: Aimbridge Hospitality

Currently providing unitholders with a 12%+ yield, as we invest in upgrading our hotel properties, and work with

  • ur new hotel manager to

drive stronger margins and better returns

Effective with the July 2018 distribution, withholding taxes are only apply to 60% of our distributions, as the remaining 40% represents a return of capital this year. = Certain unitholders will receive higher net proceeds

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Appendices

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  • Portfolio growth – by guestrooms
  • Secondary U.S. market rationale
  • 2018 PIP schedule
  • 2019 PIP schedule
  • Case studies of hotel PIP projects

Residence Inn, Pittsburgh Cranberry Township

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SLIDE 32

11,549

Guestrooms (As at September 30, 2018)

7.6 .6%

CAGR since Q1 2013

62 62%

Growth since Q3 2016

Portfolio Growth – total guestrooms

2,505 2,564 2,641 3,113 3,516 3,571 3,958 5,119 5,228 5,860 6,797 6,915 7,048 7,095 7,119 8,156 9,383 11,570 11,570 11,708 11,709 11,591 11,549

  • 2,000

4,000 6,000 8,000 10,000 12,000 14,000

GUESTROOM GROWTH

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Why U.S. secondary markets? Why select service Hotels?

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0.0 1.0 2.0 3.0 4.0 5.0 Primary Secondary Markets

Economic Outlook

  • GDP forecasts are the highest correlation to performance of the U.S. hotel industry
  • The U.S. Federal Reserve Board projects 3.0% to 3.2% GDP growth in 2018
  • The U.S. hotel industry continues to achieve strong performance including record occupancy levels, growing RevPAR

fueled by rising ADR

Area of Opportunity 3.4M guestrooms U.S. Canada

U.S. Secondary Markets

  • Includes cities such as Cincinnati and Baltimore
  • 3.4 million guestrooms (vs 1.6 in Primary markets)
  • Deep pipeline of high quality assets
  • Strategically located within or near large population

centres (>2M pop.), transportation corridors and demand generators

Select Service Hotel Advantages

  • Higher margins with lower volatility
  • Strong consumer demand and broad appeal
  • Simple, efficient operational model

Million guestrooms

400,000 guestrooms

Top 6 Cities Top 25 Cities

GUESTROOMS BY COUNTRY / MAJOR CITIES

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2018 PIP projects

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Scheduled Renovation Dates

Hotel Name and and Guestroo

  • oms

Q1 2018 2018 Q2 2018 2018 Q3 2018 Q4 2018 2018

Embassy y Suit ites es Cinc ncinna innati i (227 guestrooms) Ongoing Ongoing Completed Embassy y Suit ites es DFW W South uth (305 guestrooms) Ongoing Ongoing Completed Hilton

  • n Garden

en Inn Whit ite e Marsh h (155 guestrooms) Completed Embassy y Suit ites es Colum umbus us (284 guestrooms) Ongoing Ongoing X Staybrid idge e Suit ites es Tampa pa East/Brando ndon n (100 guestrooms) X Resid idenc nce Inn Baltimor more e Whit ite Marsh h (131 guestrooms) X

The following hotel properties are scheduled to undergo PIP projects estimated to be more than US$500,000 in 2018:

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2019 PIP projects

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Scheduled Renovation Dates

Hotel Name and and Guestroo

  • oms

Q1 2019 Q2 2019 Q3 2019 Q4 2019

Fair irfield ield Inn n & Suites Jacksonville

  • nville (89 guestrooms)

Ongoing Resid idenc nce Inn Chattanooga nooga (87 guestrooms) X X Homewood ewood Suites Allen entown

  • wn (108 guestrooms)

X Homewood ewood Suites Bethle hlehem hem (108 guestrooms) X Homewood ewood Suites Dover ver (108 guestrooms) X Holid iday y Inn Expr press ess Fort Myers (111 guestrooms) X Holid iday y Inn Expr press ess Sarasot

  • ta (101 guestrooms)

X Embassy y Suit ites es Tempe pe (224 guestrooms) X X Embassy y Suit ites es Clev evela eland nd (271 guestrooms) X X X Townep epla laceSuit ites es Chattanoog nooga (87 guestrooms) X Cour urtyar ard d Ocala ala (169 guestrooms) X

During 2019, AHIP expects to invest approx. $25 million of capital in hotel renovations. Due to the type of hotel upgrades being completed, AHIP forecasts less than $2 million of impact to EBITDA from direct renovation displacement.

  • Majority of displacement during 2019 will be created by renovations at the Embassy Suites Cleveland
  • Renovations at the Embassy Suites Tempe will occur in a seasonally very slow period, reducing the impact to

company performance.

The following hotel properties are scheduled to undergo PIP projects estimated to be more than US$500,000 in 2019:

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SLIDE 36

Investment Case Study: NC & GA Portfolio

36 Four hotels were acquired in North Carolina and Georgia in July 2014 for a purchase price of US$30.5 million and US$1.8 million of PIPs & reserve

$927 $249 $617 $598

  • 20%

37% 7% 5%

  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 100 200 300 400 500 600 700 800 900 1,000 2015 2016 2017 3-yr Annual Average Capex ANOI per key - Annual growth

108 111 113

100 102 104 106 108 110 112 114 116 2015 2016 2017

NC & GA ACQUISITION: PIPS AND PERFORMANCE (Capex in ‘000)

  • AVG. REVPAR INDEX PER YEAR: NC & GA ACQUISITION

(Market share measure in region of hotel. 100 = ‘average’ regional market share)

  • Portfolio consists of 2 Fairfield Inn & Suites, 1 Hampton Inn, 1 Springhill Suites
  • 387 guestrooms in total
  • First year after acquisition

usually involves higher levels of renovations = temporary impact on ANOI (displacement, construction)

  • Following years benefit

from the upgrades (increased market share and ANOI)

FAIRFIE IELD D INN & SUITES, KINGS GSLAND, D, GA

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SLIDE 37

$252 $1,748 $3,161 $1,720

8% 18%

  • 1%

8%

  • 5%

0% 5% 10% 15% 20% 25% 500 1,000 1,500 2,000 2,500 3,000 3,500 2015 2016 2017 3-yr Annual Average Capex ANOI per key - Annual Growth

Investment Case Study: NC & FL Portfolio

37 Four hotels were acquired in North Carolina and Florida in November 2014 for a purchase price of US$41.0 million and US$6.9 million of PIPs & reserve

NC & FL ACQUISITION: PIPS AND PERFORMANCE (Capex in ‘000)

  • AVG. REVPAR INDEX PER YEAR: NC & FL PORTFOLIO ACQUISITION

(Market share measure in region of hotel. 100 = ‘average’ market share)

  • Portfolio consists of 2 Fairfield Inn & Suites, 1 Hampton Inn, 1 Courtyard
  • 353 guestrooms in total
  • First year after acquisition

usually involves higher levels of renovations = temporary impact on ANOI (displacement, construction)

  • New supply in markets

can at times impact RevPAR and ANOI

  • AHIP and its hotel

manager can use PIPs defensively to drive market share in these situations

137 138 138 100 105 110 115 120 125 130 135 140 145 2015 2016 2017 HAMPTON INN, STATEV EVIL ILLE, E, NC

Maintained strong market share in spite

  • f new supply

New supply entered hotel markets in 2017

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