American Hotel Income Properties REIT LP Announces Appointment of Jonathan Korol as New CEO
September 08, 2020 at 07:30 AM EDT
VANCOUVER, BC, Sept. 8, 2020 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN, HOT.U and HOT.DB.U) is pleased to announce that Jonathan Korol has been appointed its Chief Executive Officer effective October 7, 2020. Mr. Korol is a proven leader who brings a deep understanding of the North American hotel industry gathered over decades as an owner, operator and asset manager, making him the ideal candidate to assume the role of CEO.
Mr. Korol comes to his new role from SilverBirch Hotels & Resorts ("SilverBirch"), where he has been President since February 2017. At SilverBirch, Jonathan oversaw one of Canada's largest hotel owner/operators with a portfolio of close to 5,000 guest rooms operated under internationally recognized brands. Before becoming President, he led SilverBirch's Investment & Portfolio Management team as Senior Vice President, where he managed all of the firm's acquisition, disposition, development and asset management activities. Before joining SilverBirch, Mr. Korol co-founded Amadeus Property Partners, a private real estate investment fund focused on investing in select-service hotels and retail and multi-family properties in gateway markets throughout North America. He spent the formative part of his career at Apollo Real Estate Advisors (now Ares Management), where he was a Vice President focusing on equity and debt investing in all property types. Jonathan started his professional career as an Investment Banker with Merrill Lynch. He holds a B.Comm from the University of British Columbia and an MBA from the University of Pennsylvania's Wharton School.
"We are excited to announce the appointment of Jonathan as Chief Executive Officer. He is a seasoned real estate professional with significant experience across North America in all aspects of hospitality properties and has an impressive track record of success on both sides of the border," noted Michael Murphy, Chair of AHIP's Board of Directors (the "Board"). Mr. Murphy continued, "Jonathan's appointment was unanimously supported by our Board. We believe that his appointment will accelerate the execution of the next chapter of AHIP's strategic plan."
As CEO, Mr. Korol will lead the executive team at AHIP and will work with the Board to refine and fulfill AHIP's strategic plan. Mr. Korol will also oversee and work with AHIP's internal asset management and corporate finance teams to maximize the performance of AHIP's existing portfolio and identify suitable M&A and capital recycling strategies to ensure AHIP maintains an optimal mix of properties and capital to drive strong long-term value for AHIP's unitholders. While Jonathan will be based in Vancouver, he will be travelling frequently to review AHIP's portfolio and to meet with key partners as well as investors.
"I would like to thank the Board for providing me with this unique opportunity. I look forward to working with the Board and management team on the next exciting phase of AHIP's evolution," said Mr. Korol. He added, "I believe that AHIP's hotel portfolio, with its focus on premium branded select-service hotels in secondary "drive to" markets, is among the best positioned North American hospitality platforms to withstand and quickly recover from the ongoing impacts of the COVID-19 pandemic."
Mr. Korol will succeed John O'Neill, one of AHIP's co-founders, who has been Chief Executive Officer since October 2018 and who has advised the Board of his retirement.
"We thank John for his strong leadership over the past two years, particularly as AHIP navigated the unprecedented challenges faced by the U.S. hotel industry in light of the COVID-19 pandemic over the past six months. He also successfully led the sale of AHIP's Economy Lodging portfolio for $215.5 million and the concurrent redeployment of those proceeds into a portfolio of 12 premium branded hotels during latter 2019 to re-shape and improve the quality of our hotel portfolio. We will miss John's leadership and integrity but look forward to his continued support as one of AHIP's largest unitholders," said Mr. Murphy.
"It was an honour to lead AHIP over the past two years," said Mr. O'Neill. "I look forward to spending more time with my family in my retirement and pursuing some new endeavors. I will miss the amazing AHIP team and Board, but will continue to strongly support AHIP and Mr. Korol, who is an exceptional leader, as he takes the company forward." Mr. O'Neill added, "AHIP has indeed fared better than many hospitality companies in light of the impacts of COVID-19 and is well positioned to succeed and grow in the future. Since March, AHIP has restructured various of its debt facilities and received covenant waivers on most of its loans. Over the past two months, AHIP has also returned to aggregate occupancy levels above 50% and is once again generating positive cash flows."
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN; HOT.U and HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's 78 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, IHG and Choice Hotels through license agreements. The company's long-term objectives are to build on its proven track record of successful investment, deliver monthly U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio. More information is available at www.ahipreit.com.
Certain statements in this news release may constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking information involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking information referred to in this news release includes, but is not limited to, statements with respect to: the effective timing of the appointment of Mr. Jonathan Korol as Chief Executive Officer of AHIP and Mr. John O'Neill's retirement; the Board's belief that Mr. Korol's appointment will accelerate the execution of the next chapter of AHIP's strategic plan; Mr. Korol's expected duties as CEO, including overseeing and working with AHIP's internal asset management and corporate finance teams to maximize the performance of AHIP's existing portfolio and identify suitable M&A and capital recycling strategies to ensure AHIP maintains an optimal mix of properties and capital to drive strong long-term value for AHIP's unitholders; the expectation that Mr. Korol will be travelling frequently to review AHIP's portfolio and to meet with key partners as well as investors; Mr. Korol's belief that that AHIP's hotel portfolio, with its focus on premium branded select-service hotels in secondary "drive to" markets, is among the best positioned North American hospitality platforms to withstand, and quickly recover from, the ongoing impacts of the COVID-19 pandemic; Mr. O'Neill's intention to continue to strongly support AHIP and Mr. Korol; Mr. O'Neill's belief that AHIP is well positioned to succeed and grow in the future; and AHIP's long-term objectives.
Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: AHIP will be successful in executing its strategic plan; the COVID-19 pandemic will continue to negatively impact the U.S. economy, U.S. hotel industry and AHIP's business, and the extent and duration of such impact; Mr. O'Neill will continue to support AIHP as one of its largest unitholders; a reasonably stable North American economy and stock market; the continued strength of the U.S. lodging industry; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; and the value of the U.S. dollar. Although the forward-looking information contained in this news release is based on what AHIP's management believes to be reasonable assumptions and on information currently available, AHIP cannot assure investors that actual results will be consistent with such information.
Forward-looking information involves significant risks and uncertainties and should not be read as guarantees of future performance or results. Those risks and uncertainties include, among other things, risks related to: the possibility that the performance of AHIP's portfolio may not be maximized and long-term value enhancement may not be achieved at anticipated levels, or at all; the pace of recovery following the COVID-19 pandemic cannot be accurately predicated and may be slow; AHIP may not be successful in executing its strategic plan; current occupancy recovery trends at AHIP's hotels may not continue, may decelerate or regress; Mr. O'Neill may not continue to support AIHP and may not continue to be one of its largest unitholders; and AHIP may not realize any of its long term objectives contemplated in this news release or otherwise. Additional information about risks and uncertainties is contained in AHIP's MD&A dated August 6, 2020 and annual information form for the year ended December 31, 2019, copies of which are available on SEDAR at www.sedar.com.
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 and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
SOURCE American Hotel Income Properties REIT LP