American Hotel Income Properties announces dispute with Aimbridge Hospitality

American Hotel Income Properties REIT announced that AHIP and certain of its subsidiaries are in a dispute with hotel manager ONE Lodging Holdings itself a subsidiary of Aimbridge Hospitality, and various of its own subsidiaries related to Aimbridge’s mismanagement of AHIP’s hotel portfolio. Earlier this month, AHIP delivered a detailed notice of default to Aimbridge providing notice that Aimbridge is in material default of the Master Hotel Management Agreement dated February 20, 2013, as amended and the individual hotel management agreements made thereunder. Aimbridge’s management failures, arising in part from a lack of leadership consistency and recurring organizational instability, have caused AHIP material economic harm. Pursuant to the dispute resolution procedure called for in the contract between the parties, AHIP also delivered a notice of appointment referring the matters set forth in the Default Notice to an independent expert for a determination that Aimbridge is in default of the Master HMA entitling AHIP to terminate the HMAs and recover damages. AHIP is now in receipt of a notice of civil claim filed by Aimbridge in the Supreme Court of British Columbia. Aimbridge is claiming, amongst other things, that the matters identified in the appointment notice must be resolved by the courts of British Columbia notwithstanding the agreed dispute resolution procedure.