WINNIPEG, Nov. 1, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today it has completed the previously announced acquisition of the Acclaim Hotel Calgary Airport (the "Hotel") for $42 million, subject to the usual closing adjustments. The Hotel is located two kilometers north of the Calgary International Airport at 123 Freeport Boulevard Northwest. The Hotel is situated on a four acre parcel of land leased from the Calgary Airport Authority.
The four storey, full-service Hotel opened in 2009 with 123 guestrooms and was expanded during 2012/13 by an additional 102 guestrooms, bringing the total room count to 225. The Hotel offers a variety of amenities which include:
- 6,500 square feet of banquet and meeting space;
- two roof-top outdoor whirlpools;
- leased restaurant and lounge; and
- 260 surface parking spaces and a 40 stall underground parking garage.
Based on 2013/14 forecasted net income of $5.35 million, the $42 million acquisition cost represents a capitalization rate of approximately 12.75%. The acquisition was financed with a first mortgage loan in the amount of $27.3 million and the balance in cash. The first mortgage loan bears interest at a rate of 4.72% for a 5-year term and has a 20-year amortization.
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]