Temple Hotels Inc. announces acquisition of two Days Inn hotels in Thunder Bay, Ontario
WINNIPEG, June 11, 2014 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today that it has agreed to acquire two market leading hotel properties in Thunder Bay, Ontario for an aggregate purchase price of $26.5 million, subject to customary closing costs and adjustments.
Days Inn North
Days Inn North is a limited-service hotel centrally located within Thunder Bay at 1250 Golf Links Road, approximately 950 metres east of the Trans-Canada Highway. The three-story property opened in 2007 and is comprised of 92-guestrooms. The hotel is situated 6.7 kilometres northeast of the Thunder Bay International Airport and is the closest accommodation facility near to the Thunder Bay Regional Sciences Centre, is a state-of-the-art acute care facility serving the healthcare needs for Thunder Bay and Northeastern Ontario. The hotel is also located near Confederation College and Lakehead University and is approximately five kilometres from downtown Thunder Bay. The hotel features a complimentary breakfast room, one 350 square foot board/meeting room, fitness room and 100 parking spaces.
Days Inn & Suites
Days Inn & Suites is a limited-service hotel centrally located within Thunder Bay at 645 Sibley Drive, approximately 2.5 kilometres east of the Trans-Canada Highway. The three-story property opened in 2002 and is comprised of 92-guestrooms. The hotel is situated 6.8 kilometres northeast of the Thunder Bay International Airport and is the closest accommodation facility near to Confederation College. The hotel is approximately 3.5 kilometres from the Thunder Bay Regional Sciences Centre and Lakehead University and is approximately five kilometres from downtown Thunder Bay. The hotel features a complimentary breakfast room, one 700 square foot meeting room, fitness room, indoor swimming pool with spa and 112 parking spaces.
The two acquisitions represent an estimated capitalization rate of 9%, based on the 2014-15 forecasted aggregate net income (after FF&E reserve). The acquisition will be financed with a first mortgage loan in the amount of $16 million and the balance in cash. The first mortgage loan will bear interest at a rate of 4.63% for a ten-year term, with a 25-year amortization. The acquisitions are scheduled to close effective July 1, 2014.
Temple is a real estate investment company listed on the Toronto Stock Exchange under the symbols TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective of Temple is to provide shareholders with stable cash dividends from investment in a diversified portfolio of hotel properties and related assets. For further information on Temple, please visit our website at www.templehotels.ca.
This press release contains certain statements regarding the proposed transaction described herein that could be considered as forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual results differing materially from the forward-looking statements. There can be no certainty that the transaction will be completed within the timeline set forth herein or at all.
The Toronto Stock Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy
or accuracy of this press release.
SOURCE Temple Hotels Inc.For further information:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Executive Vice President
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: email@example.com