WINNIPEG, May 22, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today it has agreed to acquire the Holiday Inn Express Hotel & Suites (the "Hotel") in Sherwood Park, AB for $15.15 million, subject to the usual closing adjustments. The four-storey Hotel, which opened in 2004, is located at the corner of Broadmoor Boulevard and Portage Lane within the Sherwood Business Park Neighbourhood. The Hotel is in close proximity to Sherwood Park's Millennium Place, which is a major recreation centre hosting numerous sporting events during the year.
The limited-service Hotel contains 90 guestrooms, including 69 standard rooms and 21 suites and features a breakfast room, fitness room and business centre.
Based on the 2013/14 forecasted net income, the purchase price, represents a capitalization rate of approximately 10.3%. The acquisition will be financed by the assumption of a first mortgage loan in the amount of $10.5 million and the balance in cash. The first mortgage loan bears floating interest at 5.5% and matures in three years. Close of the acquisition is scheduled to occur on June 20, 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 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 Hotels Inc.
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