WINNIPEG, Sept. 26, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today that it has agreed to acquire the Holiday Inn Express Hotel & Suites Ottawa West - Nepean, for $19.5 million, subject to the customary closing adjustments. The property is a limited-service hotel located at 2055 Robertson Road in the west Ottawa, Ontario neighbourhood of Nepean.
The six-story property opened in 2010 and is comprised of 115-guestrooms, including 58 suites. The hotel features:
- Indoor pool and hot tub;
- Complimentary breakfast bar;
- Five meeting rooms totaling approximately 4,400 square feet of meeting space;
- 160 parking stalls; and
- Fitness centre.
Based on the 2014 forecasted net income, the acquisition price of $19.5 million represents an estimated capitalization rate of 10.2%. The acquisition will be financed with a first mortgage loan in the amount of $14.265 million and the balance in cash. The first mortgage loan is expected to bear interest at a rate of 5.0% for a five-year term, with a 25-year amortization. The acquisition is expected to close on October 1, 2013.
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 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 protected]