WINNIPEG, Nov. 1, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH)
announced today it has completed the previously announced acquisition
of the Acclaim Hotel Calgary Airport (the "Hotel") for $42 million,
subject to the usual closing adjustments. The Hotel is located two
kilometers north of the Calgary International Airport at 123 Freeport
Boulevard Northwest. The Hotel is situated on a four acre parcel of
land leased from the Calgary Airport Authority.
The four storey, full-service Hotel opened in 2009 with 123 guestrooms
and was expanded during 2012/13 by an additional 102 guestrooms,
bringing the total room count to 225. The Hotel offers a variety of
amenities which include:
6,500 square feet of banquet and meeting space;
two roof-top outdoor whirlpools;
leased restaurant and lounge; and
260 surface parking spaces and a 40 stall underground parking garage.
Based on 2013/14 forecasted net income of $5.35 million, the $42 million
acquisition cost represents a capitalization rate of approximately
12.75%. The acquisition was financed with a first mortgage loan in the
amount of $27.3 million and the balance in cash. The first mortgage
loan bears interest at a rate of 4.72% for a 5-year term and has a
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
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 all at.
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