Temple Hotels Completes Sale of Holiday Inn Express Hotel & Suites in Sherwood Park, AB

MISSISSAUGA, ON. October 3, 2017 - Temple Hotels Inc. ("Temple" or "the Company") (TSX: TPH) announced today that the Company has completed the sale of the Holiday Inn Express Hotel & Suites in Sherwood Park, a suburb of Edmonton, AB. The disposition was completed for $9.6 million, excluding taxes and transaction costs.

"This divestiture is an important step in the execution of our strategic plan that will drive the long-term success of the Company, " said K. Rai Sahi, Chief Executive Officer. "The opportunistic sale of this property enables us to meet our financial obligations while continuing to strategically diversify the Company's portfolio and decrease our reliance on a single geographic market."

The sale comes as Temple moves to mitigate exposure in Alberta, which continues to be impacted by the oil-related economic downturn, as part of the Company's overarching growth strategy. Temple's second quarter results showed positive progress and a strengthened financial position, with the Company posting increases in net income and revenue over previous periods.

The Company used the proceeds of the sale to repay $9.1 million of mortgages payable secured against the property. As reported in an earlier update, Temple has resolved five of the ten covenant violations reported at June 30, 2017. The Company continues to work diligently with its lenders to resolve the remaining mortgage covenant violations, which have primarily been caused by the downturn in the Alberta market. The outstanding breaches are expected to be resolved by debt refinancing, loan modifications agreements and/or a waiver of the covenant requirements.

"We appreciate the support of our lenders as we continue to make progress that will deliver the long-term success of Temple, " said Sahi.

About Temple Hotels Inc.

Temple is a growth oriented hotel investment company with hotel properties located across Canada. Temple is listed on the Toronto Stock Exchange under the symbols TPH (common shares), TPH.DB.E and TPH.DB.F (convertible debentures). The primary long-term investment objectives of the Company are to yield stable and growing cash flows and to maximize the long-term share value of the Company through the active management of its assets, accretive acquisitions, and the performance of value-added capital improvement programs on selected properties, as deemed appropriate. For further information on Temple, please visit our website at www.templehotels.ca.

Contact:
Paul Miatello
905-281-3800

Related News

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.