WINNIPEG, Jan. 10, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today that, effective December 31, 2012, it has acquired a 50% ownership interest in the Courtyard By Marriott in downtown Ottawa, Ontario (the "Hotel") for $13.25 million. The four storey, full-service Hotel is located at 350 Dalhousie Street and is the only hotel within a four block radius of the historic Byward Market, Ottawa's premier tourist attraction and destination for shopping, dining, arts, entertainment and professional services for residents and visitors to Ottawa. The Hotel is within walking distance of the Parliament Buildings, National Arts Centre, Museum of Civilization and the National Art Gallery.
The Hotel contains 183 guestrooms, all of which were completely renovated during 2010 and 2011. The Hotel also contains 5,000 square feet of banquet and meeting facilities, restaurant, lounge, indoor swimming pool, whirlpool, fitness centre and business centre. The Hotel is ideally suited for both business and leisure travel.
Based on the forecasted net income for 2013, the $13.25 million purchase price represents a capitalization rate of approximately 10%. The acquisition was financed by the assumption of 50% of the existing first mortgage loan in the amount of $2.17 million and the balance in cash. The first mortgage loan bears interest at 3.52% and matures on April 15, 2013.
Temple expects to acquire the remaining 50% ownership of the Hotel.
Temple is a real estate investment company listed on the Toronto Stock Exchange under the symbols TPH (common shares), TPH.DB.B, TPH.DB.C, TPH.DB.D and TPH.DB.E (convertible debentures). The objective of Temple is to provide shareholders with stable 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 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.
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 REIT
For further information:
Arni Thorsteinson, Chief Executive Officer, or Gino Romagnoli, Investor Relations
Tel: (204) 475-9090, Fax: (204) 452-5505, Email: email@example.com