December 2017

INVESTOR PRESENTATION

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

TSX: HOT.DB.U (Debentures)

2017 Acquisition: Courtyard by Marriott Wall Township, NJ

FORWARD LOOKING STATEMENTS

This corporate update is a summary and should be read together with the more detailed information, financialdata and statements made available by American Hotel Income Properties REIT LP (the “REIT”). This corporateupdate contains forward-looking statements which reflect management’s expectations regarding objectives,plans, goals, strategies, future growth, results of operations, performance and business prospects andopportunities 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 notlimited to, statements with respect to the ability of the REIT to execute its growth strategies; the expected taxtreatment of the REIT and of the REIT’s distribution to Unitholders; the expected growth in the U.S. lodgingindustry and trends; and other considerations which are outlined in the REIT’s Annual Information Form datedMarch 27, 2017. Forward-looking statements are necessarily based on a number of estimates and assumptionsthat, while considered reasonable by management of the REIT as of the date of this corporate update, areinherently subject to significant business, economic and competitive uncertainties and contingencies. The REIT’sestimates, beliefs and assumptions, which may prove to be incorrect, include the various assumptions set forthherein, including, but not limited to the REIT’s future growth potential, results of operations, future prospects andopportunities, industry trends remaining unchanged, no change in legislative or regulatory matters, future levelsof indebtedness, the tax laws as currently in effect remaining unchanged, the continual availability of capital andthe current economic conditions remaining unchanged. When relying on forward-looking statements to makedecisions, the REIT cautions readers not to place undue reliance on these statements, as forward-lookingstatements involve significant risks and uncertainties, should not be read as guarantees of future performance orresults, and will not necessarily be accurate indications of whether or not the times at or by which suchperformance or results will be achieved. A number of factors could cause actual results to differ materially fromthe results discussed in the forward-looking statements, including, but not limited to, the factors discussed underthe “Risk Factors” in the REIT’s Management’s Discussion and Analysis dated August 8, 2017. The forward-lookinginformation contained herein is made as of September 25, 2017 and, except as expressly required by applicablelaw, the REIT assumes no obligation to publicly update or revise such information.

All figures presented are in U.S. dollars, unless otherwise stated.

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COMPANY OVERVIEW

33States; 92 Cities

115 Hotels; 11,708Rooms

C$1.6B Total Enterprise Value

53.7% Debt-to-Gross Book Value

8.9% Yield

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OURINVESTMENT APPROACH

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REFINED STRATEGY

AHIP seeks to acquire properties that meet the following criteria:

▪ Stabilized in-place income

▪ All-in trailing capitalization rate >8%

▪ Acquisition cost below replacement cost

▪ Strong demand generators

▪ Limited new supply

▪ Complement existing premium branded, Select-Service hotels

▪ Targeted geographic diversification within secondary U.S. markets

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0.0 1.0 2.0 3.0 4.0 5.0

Primary Secondary Markets

WHY U.S. SECONDARY MARKETS? WHY PREMIUM-BRANDED, SELECT-SERVICE HOTELS?

Economic Outlook

▪ GDP forecasts are the highest correlation to performance of the U.S. hotel industry

▪ The U.S. Federal Reserve Board projects 2.0%+ GDP growth to continue through 2017 and2018.

▪ The U.S. hotel industry continues to achieve strong performance including record occupancy levels, growing RevPAR fueled by rising ADR

Area of Opportunity3.4M guestrooms

U.S.

Canada

U.S. Secondary Markets

▪ 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

▪ Strong consumer demand and broad appeal

▪ Simple, efficient operational model

▪ Higher margins with lower volatility Million guestrooms

400,000 guestrooms

1. Source: CBRE Hotels’ Americas Research - Hotel Horizons® March 2017 – May 2017, STR2. Source: STR Inc., Tourism Econometrics 6

Top 6 Cities

Top 25 Cities

GEOGRAPHIC DIVERSITY BASED ON DEMAND

Consistent with AHIP’s acquisition strategy, all properties are strategically located within or near:

▪ Larger population centers

▪ Transportation corridors

▪ Demand generators

115 hotels in 92 cities totaling 11,708 guestrooms

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Economy Lodging HotelsPremium Branded Hotels

PORTFOLIO GROWTH – TOTAL GUESTROOMS

11,708Guestrooms (As at Nov. 15, 2017)

8.0%CAGR since Q1 2013

64%Growth since Q3 2016

8

2,50

5

2,56

4

2,64

1

3,11

3

3,51

6

3,57

1

3,95

8 5,11

9

5,22

8

5,86

0

6,79

7

6,91

5

7,0

48

7,0

95

7,11

9 8,15

6 9,38

3

11,5

70

11,5

70

11,7

08

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

GUESTROOM GROWTH

PREMIUM BRANDEDHOTEL PORTFOLIO

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BRAND DIVERSITY: PREMIUM SELECT SERVICE HOTELS

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

▪ Strong national and regional sales, revenue management and operational teams to drive increased revenue

▪ External hotel management team with extensive experience to drive margin growth

▪ Capital reinvestment and asset preservation to increase market share and long-term value creation

67 Premium Branded hotels;

7,684 guestrooms

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NOI, 81%

NOI, 19%

Hotel Guest rooms, 66%

Hotel Guest rooms, 34%

Premium Branded Hotels

Economy Lodging Hotels

*Total guestrooms as at September 30, 2017Net Operating Income (NOI) for Q3 2017

Premium Branded hotels comprise 66% of our total guestrooms, but 81% of our NOI*

RECAP OF THE LAST 12 MONTHS: PREMIUM BRANDED PORTFOLIO

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35 33

67

0

10

20

30

40

50

60

70

80

Q3 2016 RecentAcquisitions

CurrentPortfolio

NUMBER OF BRANDED HOTELS

96

148

115

0

20

40

60

80

100

120

140

160

Same Store - Q32016

RecentAcquistions

CurrentPortfolio

AVERAGE HOTEL SIZE(# OF GUESTROOMS)

Increased by 20%Number of branded hotels nearly doubled

ECONOMY LODGINGHOTEL PORTFOLIO

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LEADING PROVIDER OF RAIL CREW LODGING

Typical Contract Terms

▪ Minimum revenue guarantees stabilize cash flow through a wide range of economic conditions

▪ Long-term contracts: ~4.0 years average contract term remaining

▪ Inflation-adjusted room rate escalators

Rail Crew Lodging Specifications

▪ Guestrooms are designed to be “Dark & Quiet”:

▪ light-proofing features

▪ sound dampening materials

▪ 24-hr proprietary food service

48 economy lodging hotels; 4,024 guestrooms

Rail Initiatives

▪ Capital reinvestment in excess of $3.0M to secure rail crew contract renewals and extensions

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NOI, 81%

NOI, 19%

Hotel Guest rooms, 66%

Hotel Guest rooms, 34%

Premium Branded Hotels

Economy Lodging Hotels

*Total guestrooms as at September 30, 2017Net Operating Income (NOI) for Q3 2017

Economy Lodging Hotels comprise 34% of our total guestrooms, but only 19% of our NOI*

-30%

-20%

-10%

0%

10%

20%

30%

40%

U.S. FREIGHT RAIL INDUSTRY RECOVERY UNDERWAY

TOTAL U.S. RAIL CARLOAD GROWTH –RELATIVE TO SAME Q PRIOR YEAR

Data is based on originations, are not seasonally adjusted, and do not include the U.S. operations of CN and CP. Source: AAR

For the first 9 months of 2017, U.S. railroads reported cumulative volume

of 27,240,916carloads, up 5.9% compared to last year.

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2014 2015 2016 2017 YTD

NEW WYNDHAM BRAND AGREEMENT

Favourable contract terms

▪ Royalty fee carveouts related to AHIP’s existing rail crew contract revenue

▪ Advantageous fee schedule for first several years of the 15-year contract

Many benefits to drive stronger performance at AHIP’s Economy Lodging hotels

▪ Expect to draw more transient guests

▪ Stronger brand recognition

▪ Access to Wyndham’s worldwide reservations network

▪ Ability to offer guests access to Wyndham’s award-winning rewards program

▪ Ability to drive higher occupancy for rooms otherwise not used by rail crew contract guests

On Nov. 1, 2017, AHIP announced an agreement to rebrand 46 (all) of our EconomyLodging Hotels under Wyndham hotel brands

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VALUE CREATION16

CAPITAL INVESTMENT & RENOVATION HISTORY

Current Reserve Funds allow AHIP to complete scheduled PIPs over the next 24 months without disrupting AFFO or low payout ratio.

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$12,200 $13,200

$25,000

$36,100 $35,800

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

YE 2015 YE 2016 Q1 2017 Q2 2017 Q3 2017

RESERVE FUND

$35.8 million of restricted cash held on deposit for upcoming PIP renovations in 2018.

• No need to raise capital for upcoming hotel renovations

• Cash on deposit is not return generating until deployed for hotel improvements

VALUE CREATION:RESIDENCE INNPITTSBURGH CRANBERRY, PA

The Residence Inn Pittsburgh Cranberry received a comprehensive, high-impact renovation.

• $3.3 million invested into 96 guestroom improvements and extensive lobby and common area renovations

• Positioned hotel to be one of the most competitive hotels within the market.

AS A DIRECT RESULT OF THE RENOVATIONS:

10.1%RevPAR Growth

13.9%Market Share Gain

After

Before

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After

Before

The Hampton Inn Harrisonburg had average market performance; however, analysis showed the property to be under-performing in ADR and RevPAR.

AHIP invested $4.4 million dollars for exterior upgrades and all 159 guestrooms received a fresh, contemporary new look, including one suite that was converted into a boardroom that better positioned the hotel to attract small business meetings and corporate group.

As a direct result of the renovations:

29.3%RevPAR Growth

12.3%Market Share Gain

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VALUE CREATION:HAMPTON INN, HARRISONBURG UNIVERSITY, VA

FINANCIALHIGHLIGHTS

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TRACK RECORD OF GROWTH (USD$)

$220,031

$65,759

21

$48,052

$93,143

$143,767 $173,515

$265,788

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2013 2014 2015 2016 TTM 2017(Sept. 30,

2017)

REVENUE GROWTH (IN US$'000S)

$11,183

$24,427

$41,175

$52,355

$81,426

$-

$15,000

$30,000

$45,000

$60,000

$75,000

$90,000

2013 2014 2015 2016 TTM 2017(Sept. 30,

2017)

EBITDA GROWTH (IN US$'000S)

FINANCIAL HIGHLIGHTS

Three months endedSeptember 30, 2017

Number of Rooms

Revenues (‘000)

EBITDA (‘000)

EBITDA Margin

FFO per Unit

AFFO per Unit

AFFO Payout Ratio

Debt/Gross Book Value

Interest Coverage

WA Loan Interest Rate

WA Loan Term

11,570

$90,311

$30,099

33.3%

$0.25

$0.21

76.1%

53.7%

3.6x

4.61%

7.8 years

Three months endedSeptember 30, 2016

7,119

$44,508

$14,460

32.5%

$0.24

$0.21

82.5%

43.9%

4.0x

4.56%

7.5 years

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DEBT MATURITY LADDER

No significant debt maturity until February 2023

▪ Weighted average loan term: 7.8 years

▪ Weighted average fixed interest rate: 4.61%

▪ 100% fixed rate debt

$0

$50

$100

$150

$200

$250

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Mortgages Convertible Debentures

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CONSERVATIVE AFFO PAYOUT RATIO A

FFO

Pa

you

t R

ati

o

▪ Payout ratio has consistently improved due to better performing assets (growing branded hotel portfolio)

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114.9%

100.2%

89.2%83.4%

76.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

YE 2013 YE 2014 YE 2015 YE 2016 Q3 2017

PAYOUT RATIO

ATTRACTIVE AND SUSTAINABLE DISTRIBUTION

Source: Bloomberg May 17, 2017

8.9% Yield

▪ Pay USD distributions of $0.054 per month (equivalent to USD$0.648 per year)

▪ Four consecutive years of consistent distributions

▪ AFFO payout ratio of 76.1% in Q3 2017

▪ Lower AFFO payout ratio provides sustainable distributions

CompanyEnterprise

Value Yield

2018F AFFO

Multiples

AHIP REIT C$ 1.6B 8.9% 8.6x

Chatham Lodging Trust US$1.4B 5.9% 11.3x

Hersha Hospitality Trust US$2.2B 6.4% 11.1x

Summit Hotel Properties Inc. US$2.6B 4.5% 13.5x

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FORMULA FOR THE FUTURE26

FORMULA FOR THE FUTURE

Focused on Performance

▪ Experienced management team

▪ Disciplined investment strategy

▪ Commitment to reinvestment

Poised for Growth

▪ Strong pipeline of acquisition opportunities that meet our stated criteria

▪ Targeted geographic diversification in larger secondary markets

▪ Focus on premium branded, Select-Service hotels with wide market appeal

▪ Balance sheet strength allows for accretive acquisitions

▪ Capital markets support

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Conservative capital management

▪ Sustainable payout ratio ensures consistent returns to unit holders (USD$0.648 annual distribution per unit)

▪ Hotel acquisitions leverage long-term, fixed rate mortgages

▪ Current loans have an average interest rate of 4.61% and an average loan-term of approx. 7.8 years

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APPENDIXES- American Hotel Income Properties Executive Team

- ONE Lodging Management Executive Team

AMERICAN HOTEL INCOME PROPERTIES REIT EXECUTIVE TEAM

Rob O’NeillChief Executive Officer

Ian McAuleyPresident

Azim LalaniChief Financial Officer

Anne YuVice President, Finance

▪ Hotel industry veteran ▪ Co-Founder of Coast Hotels and O’Neill Hotels & Resorts▪ Founder of CHIP REIT, which was subsequently sold to B.C. Investment Management Corp. for Cdn$1.2 billion

▪ Co-Recipient of the Canadian Hotel Industry Entrepreneur of the Year Award from the Canadian Hotel Investment Conference

▪ President and CEO of Continuum Health Care Holdings Ltd. which was sold▪ Co-Founder, President and Chief Operating Officer of Superior Lodging Corp., Recipient of Hotelier Magazine’s

Pinnacle Awards – Company of the Year▪ Co-Founder and partner in InnVentures Hospitality Corp., a Vancouver-based boutique hotel management and

consulting firm

▪ 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.)

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ONE LODGING MANAGEMENT EXECUTIVE TEAM

▪ President and CEO of O’Neill Hotels & Resorts and SunONE Developments Inc. ▪ Co-Owner of Whistler Lodging Company in partnership with Intrawest ▪ Operated Coast Hotels, alongside his brother, Rob and their father Jack (founder) ▪ Co-Founder of CHIP REIT which was subsequently sold to B.C. Investment Management Corp. for Cdn$1.2 billion

▪ President of Coast Hotels▪ Chief Operating Officer, Westmont Hospitality Group▪ President and COO, SilverBirch Hotels & Resorts▪ 17 years with Westin Hotels and Resorts holding progressively senior roles in sales, marketing and hotel operation

▪ 25 years of extensive repositioning and branding experience with such hotel brands as Marriott, Hilton, Starwood,▪ Winding Road Development Company (Scottsdale, AZ) in management and consulting capacities▪ Previous roles also include Regional Vice President at Intrawest Hospitality Management and Vice President and General Manager of

Snowshoe Mountain

▪ Senior VP of Rize Alliance Properties Ltd, a developer of residential and commercial real estate ▪ Chief Financial Officer of T&M Management Services Ltd.▪ Vice President of Finance for Ledingham McAllister Properties, a developer of residential and commercial real estate

▪ Vice President, Construction at Intrawest, ULC. Projects included resorts at Honua Kai in Hawaii, Winter Park and Copper Mountain in Colorado along with Whistler Blackcomb, Panorama and Blue Mountain in Canada

John O’NeillChairman and Chief Executive Officer

Robert PrattPresident

Bruce PittetSenior Vice President, Operations

Mark PowellChief Financial Officer

Russ FriesenSenior Vice President, Design & Construction

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info@ahipreit.com

ahipreit.com

(604) 630-3134

800-925 West Georgia Street Vancouver, BC V6C 3L2 Canada

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