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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | OMB Number: 3235-0722 Expires: September 30, 2021 Estimated average burden hours per response . . . . . . . 5.0 |
FORM 1-U
CURRENT REPORT PURSUANT TO REGULATION A
Date of Report (Date of earliest event reported) | May 31, 2024 |
American Hospitality Properties REIT II, Inc.
(Exact name of issuer as specified in its charter)
Delaware | 92-2883234 | |
State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) |
14643 Dallas Parkway, Suite 970, Dallas, Texas 75254
(Full mailing address of principal executive offices)
(214) 750-2967
(Issuer’s telephone number, including area code)
Title of each class of securities issued pursuant to Regulation A: | Common Stock |
Item 9. Other Events
On January 31, 2024, American Hospitality Properties REIT II, Inc. (the “Company”) entered into a joint venture (the “Joint Venture”) with American Hospitality Properties REIT, Inc. (“REIT I”), pursuant to which the Company and REIT I acquired a seven-hotel portfolio (the “Portfolio”) from Lakemore-Phoenix Investment Platform B, LLC (“Platform B”). Platform B initially acquired the Portfolio in July 2017, with substantially all of the equity required for the acquisition being provided by an unrelated Dubai-based investment fund. The Joint Venture acquired the Portfolio from Platform B for a purchase price equal to approximately $90.7 million consisting of approximately $25.7 million in equity and the assumption of approximately $65 million in debt secured by the Portfolio, representing a discount of approximately 35% on the book value of Platform B. The stabilized value of the properties in the Portfolio as of the end of 2022 (the date of the most recent appraisal) was $96.1 million. The equity portion of the purchase price was initially funded by capital contributions to the joint venture by the Company and REIT I in the amounts of $7.2 million and $21.8 million, respectively. Pursuant to the terms of the joint venture agreement, the Company had the option to acquire up to a 50% interest in AHP REIT Port B LLC, the entity owning the Portfolio, at a value equal to the cash paid by the Joint Venture for the Portfolio (including all transaction fees). On May 31, 2024, the Company completed its acquisition of a 50% interest in the Joint Venture for an aggregate purchase price of approximately $14.5 million, which amount was fully funded by the proceeds of the Company’s offering of shares of its common stock pursuant to an offering statement qualified by the Securities and Exchange Commission in September 2023.
The seven hotel properties owned by the Joint Venture consist of:
Hotel | Address | Date of Construction | Date of Recent Renovation | Number of Rooms | ||||
TownePlace Suites | 5437 S 48th St Springdale, AR 72762 | January 2009 | N/A | 92 | ||||
Aloft Rogers | 1103 S 52nd St Rogers, AR 72758 | June 2008 | N/A | 124 | ||||
Fairfield Inn & Suites | 3408 Access Rd Jonesboro, AR 72401 | June 2009 | N/A | 83 | ||||
Courtyard Baton Rouge | 10307 N Mall Dr Baton Rouge, LA 70809 | September 1997 | 2023 | 121 | ||||
Residence Inn Baton Rouge | 10333 N Mall Dr. Baton Rouge, LA 70809 | May 2000 | N/A | 108 | ||||
TownePlace Suites
| 5424 Citrus Blvd Harahan, LA 70123 | June 2000 | 2021 | 124 | ||||
Hampton Inn & Suites | 11281 Summerlin Square Dr Fort Myers, FL 33931 | February 2001 | 2023 | 120 |
Each of these hotels is associated with the Marriott brand, except for the Hampton Inn & Suites which is associated with the Hilton brand.
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Exact name of issuer as specified in its charter) | American Hospitality Properties REIT II, Inc. |
By (Signature and Title) | /s/ Jay Anderson, Executive Vice President and CFO |
Date | July 25, 2024 |