WINNIPEG, Oct. 1, 2014 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today its intention to internalize its asset and hotel management functions. Since commencement of operations in 2006, Temple has successfully relied on cost effective external management provided by Atlific Hotels (hotel operations management) and Shelter Canadian Properties Limited (corporate asset management services). The total cost of the combined management services contracts are 3.5% of hotel revenues which amounted to approximately $6.5 million during the twelve months ended September 30, 2014.
Given the recent growth of Temple, and continued acquisitions, management and the Board of Directors believe that the future scale of operations will be sufficient to justify the cost of an internalized management team and structure. The management internalization process will proceed progressively and is expected to be completed over a two year period commencing next year. The transition to internalized management may include the purchase of an existing hotel management company or the development of Temple's own management platform or a combination of both.
"Internalization of the hotel and asset management functions is an important step in Temple's growth." said Arni Thorsteinson, CEO of Temple. "We believe that proceeding with the internalization plan is in the best interest of shareholders."
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.
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]