WINNIPEG, July 3, 2014 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH)
announced today that it has completed the previously announced
acquisitions of 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 is a limited-service hotel centrally located 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
Days Inn & Suites is a limited-service hotel centrally located 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
The acquisitions represent an estimated capitalization rate of 9%, based
on the 2014-15 forecasted aggregate net income (after FF&E reserve).
The acquisitions were financed with a first mortgage loan in the amount
of $16 million and the balance in cash. The first mortgage loan bears
interest at a rate of 4.63% for a ten-year term, with a 25-year
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 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