WINNIPEG, July 3, 2014 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today that it has completed the previously announced acquisitions of two market leading hotel properties in Thunder Bay, Ontario for an aggregate purchase price of $26.5 million, subject to customary closing costs and adjustments.
Days Inn North is a limited-service hotel centrally located at 1250 Golf Links Road, approximately 950 metres east of the Trans-Canada Highway. The three-story property opened in 2007 and is comprised of 92-guestrooms.
Days Inn & Suites is a limited-service hotel centrally located at 645 Sibley Drive, approximately 2.5 kilometres east of the Trans-Canada Highway. The three-story property opened in 2002 and is comprised of 92-guestrooms.
The acquisitions represent an estimated capitalization rate of 9%, based on the 2014-15 forecasted aggregate net income (after FF&E reserve). The acquisitions were financed with a first mortgage loan in the amount of $16 million and the balance in cash. The first mortgage loan bears interest at a rate of 4.63% for a ten-year term, with a 25-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 at all.
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]