Temple Hotels has acquired the Radisson Plaza Hotel Saskatchewan, Regina, in Canada, for $32.8 million. The full-service Hotel is located at 2125 Victoria Avenue in downtown Regina.
The 10-story hotel, which opened in 1927, was originally one of a chain of hotels constructed and owned by the Canadian Pacific Railway. It has 224 guestrooms, and 13,922 square feet of meeting space.
Temple intends to undertake a $6-million capital expenditure program over approximately three years, consisting of guestroom and lobby refurbishments.
Based on the 2014 forecasted net income, the acquisition price of $32.8 million represents an estimated capitalization rate of 11.5 percent. The acquisition will be financed with a first mortgage loan in the amount of $21.25 million and the balance in cash. The first mortgage loan is expected to bear interest at a rate of 5.25 percent for a three-year term, with a 30-year amortization. The acquisition is expected to close on March 31, 2014.
Hotel Saskatchewan will represent Temple's fourth property in Saskatchewan, comprising a total of 771 guestrooms. Temple's other properties include the 179-guestroom Temple Gardens Mineral Spa Resort in Moose Jaw; 118-guestroom Wingate Inn in Regina; and 250-guestroom Saskatoon Inn & Conference Centre in Saskatoon.