Vancouver-based American Hotel Income Properties REIT LP (AHIP) recently entered an agreement to acquire a portfolio of four Virginia hotel properties for $37.1 million U.S.

The portfolio consists of four select-service properties operated by established national hotel brands Hampton Inn and Fairfield Inn & Suites.

The portfolio will be purchased at a weighted average going-in capitalization rate of about 10 per cent, after the inclusion of hotel management fees, administration fees and brand franchise fees. AHIP has property improvement plans valued at $6 million U.S., which includes upgrades to furniture, fixtures and equipment.

The portfolio is comprised of 403 guest rooms, located between three hotels under the Hampton Inn brand, and one hotel under the Fairfield Inn & Suites brand. There are two Hampton properties in Harrisonburg, Virginia, including one near James Madison University. The third Hampton property is located in Emporia, Virginia, while the Fairfield property is in South Hill, Virginia. The four properties are located in close proximity to interstate highway exits.

When the acquisition closes, AHIP’s portfolio will consist of 41 hotels in 20 states across the U.S., with a total of 3,517 rooms.