WINNIPEG, April 2, 2014 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today that it has completed the previously announced acquisition of the Hotel Saskatchewan (the "Hotel") for $32.8 million, subject to the customary closing adjustments. The full-service Hotel is located at 2125 Victoria Avenue in downtown Regina, Saskatchewan.
The ten-story Hotel, which opened in 1927, was originally one of a chain of hotels constructed and owned by the Canadian Pacific Railway. The Hotel features 224 guestrooms, restaurant, lounge, tea room, 13,922 square feet of meeting space, indoor whirlpool, steam room, exercise facilities, business centre, member's club, leased out barbershop, leased out salon and spa, leased out bakery and vending areas.
The acquisition price was financed with a first mortgage loan in the amount of $21.25 million and the balance in cash. The first mortgage loan bears interest at a rate of 5.1% for a three-year term, with a 30-year amortization. Based on the 2014 forecasted net income, the acquisition price of $32.8 million represents an estimated capitalization rate of 11.5%.
Temple intends to undertake a $6 million capital expenditure program over approximately three years, which will include guestrooms, dining room, lounge, meeting space and lobby refurbishments.
Hotel Saskatchewan represents Temple's fourth property in Saskatchewan, comprising a total of 771-guestrooms. Temple's other properties include the 179-guestroom Temple Gardens Mineral Spa Resort in Moose Jaw; 118-guestroom Wingate Inn in Regina; and 250-guestroom Saskatoon Inn & Conference Centre in Saskatoon.
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: firstname.lastname@example.org