Temple Real Estate Investment Trust (REIT) has announced its agreement to acquire the Hilton Garden Inn West Edmonton in Alberta, Canada, in a deal worth $31m.
The six-storey, 160-room hotel opened in 2004 and features five executive suites that have private seating areas, Jacuzzi tubs and two-way fireplaces.
Other facilities include 4,049ft² of banquet and meeting space, a heated indoor pool, whirlpool and fitness room, a restaurant and lounge and 206 surface parking spaces.
The hotel also features a market pantry, a business centre, guest laundry facilities and a vending area.
Temple REIT said it will invest $2m for renovations of the hotel’s guest rooms, lobby and corridors over the next 18 months after completion of the acquisition.
The total investment of $33m in the hotel, including capital expenditures based on the 2012-2013 forecasted net income, represents a capitalisation rate of about 10.31%.
Scheduled to close on 1 August 2012, the acquisition will be financed with a first mortgage loan in the amount of $22m and the balance in cash.
Bearing interest at an estimated rate of 5.3% for a three-year term, the first mortgage loan will have a 25-year amortisation.