WINNIPEG, July 6, 2015 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH) announced today that it has agreed to sell Hotel Saskatchewan (the "Hotel") in downtown Regina, SK for $38 million, subject to the customary closing adjustments. The sale price is net of all costs associated with renovating and rebranding the Hotel as an Autograph Collection by Marriott. The 224 room full-service Hotel was acquired by Temple in April 2014 for $32.8 million.
The sale is expected to result in net cash proceeds to Temple of approximately $17 million, after the repayment of the existing first mortgage loan in the approximate amount of $20.9 million. The net cash proceeds will be used to repay other debt and for working capital purposes. No brokerage commission is payable on the transaction.
The sale is scheduled to close on September 1, 2015.
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.