WINNIPEG, Jan. 10, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today it has agreed to acquire a 50% ownership interest in the Residence Inn London Downtown in London, Ontario (the "Hotel") for $6 million. The 13 storey, extended stay Hotel is located at 83 Colborne Street, in the heart of downtown London in close proximity to the University of Western Ontario, John Labatt Centre and London Health Sciences Centre.
The Hotel contains 116 suites each with a separate sleeping and living area and a fully equipped kitchen. The Hotel also contains meeting facilities for up to 50 people, fitness centre, business centre and access to an indoor track and swimming pool. The Hotel was completely renovated in 2010.
Based on the forecasted net income for 2013, the $6 million purchase price represents a capitalization rate of approximately 10%. The Hotel is unencumbered and will be financed entirely in cash. The acquisition is scheduled to close on January 31, 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: firstname.lastname@example.org