WINNIPEG, Feb. 27, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today it has agreed to acquire a portfolio of three full-service hotels in Nova Scotia, comprised of a total of 549 guest rooms, at a combined price of $87.5 million ($159,380 per room), subject to the customary closing adjustments. The portfolio consists of the following hotels:
Prince George Hotel
The Prince George Hotel is a full-service hotel located at 1725 Market Street in downtown, Halifax, Nova Scotia. The six-storey hotel opened in 1986 and features 203-guestrooms, two restaurants, lounge, 5,900 square feet of meeting space, indoor pool and whirlpool, exercise room, business centre and vending area. The hotel also has a 228 stall underground parking garage and 6,220 square feet of leasable commercial space.
Cambridge Suites Hotel Halifax
Cambridge Suites Hotel Halifax is an all-suites full-service hotel located at 1583 Brunswick Street in downtown Halifax, Nova Scotia. The eight-storey hotel opened in 1987 and features 200-suites, restaurant, 3,000 square feet of meeting space, indoor whirlpool, exercise room, business centre and market pantry. The hotel also has 123 parking spaces (24 surface and 99 underground) and 28,080 square feet of leasable commercial space.
Cambridge Suites Hotel Sydney
Cambridge Suites Hotel Sydney is an all-suites full-service hotel located at 380 Esplanade Road in downtown Sydney, Nova Scotia. The nine-storey hotel opened in 1989 and features 145-suites, restaurant, lounge, 1,500 square feet of meeting space, indoor whirlpool, exercise room, business centre and market pantry. The hotel also has 115 surface parking spaces.
Based on the forecasted net income for 2013, the acquisition price of $87.5 million represents an estimated capitalization rate of 9.75%. Temple will fund the acquisition price as follows:
- A new first mortgage loan in the amount of $40 million with an estimated interest rate of 4.5%, 25 year amortization and three year term;
- Vendor take-back second mortgage in the amount of $16 million with monthly interest-only payments at 5% and a five year term;
- $12.5 million through the issuance to the Vendor of two million common shares of Temple at a price of $6.25 per common share; and
- The balance in cash.
The acquisition is scheduled to close as of March 1, 2013. Temple has committed to the Vendor to invest $5 million in capital expenditures relating to the three hotels during the two and a half year period following the closing date.
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, TPH.DB.E and TPH.DB.F (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 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 protected]