Stockwatch – Canadian real estate investment trust (REIT) Temple Hotels Inc will pay $26.5 million for two hotels in Thunder Bay, Ontario, the company has announced.
The acquisition of Days Inn North and Days Inn & Suites is subject to standard closing conditions. Temple Hotels will use a combination of a $16 million mortgage loan and cash on hand to finance the deal, which is expected to close on 1 July. The transaction represents an estimated capitalization rate of 9%.
Days Inn North, located at 1250 Golf Links Road in Thunder Bay, is a three-storey limited service hotel that has 92 guestrooms, a breakfast room, board/meeting room, fitness facilities and a 100-car parking area. The property, which opened in 2007, is situated 6.7 km northeast of Thunder Bay International Airport and close to the Thunder Bay Regional Sciences Centre, Confederation College and Lakehead University.
The second property is situated at 645 Sibley Drive. It has 92 rooms, a breakfast room, meeting room, fitness facilities, an indoor swimming pool with spa and 112 parking spaces. The three-storey Days Inn & Suites opened its doors in 2002 and is located 6.8 km northeast of the airport.
The deal comes around a month after the REIT closed the $26 million of purchase of an extended-stay property in the Timberlea area of Fort McMurray, Alberta. In April, Temple Hotels wrapped up the acquisition of the iconic Hotel Saskatchewan in downtown Regina, paying $32.8 million for the property, and it bought apartment hotel Nova Court in Yellowknife, in the Northwest Territories, for $21.7 million in January.
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