A real estate investment company based in western Canada has moved into the Ottawa market with the purchase of an interest in the Courtyard by Marriott Hotel in the ByWard Market for $13.25 million.
The Courtyard by Marriott in the ByWard Market.
Temple Hotels Inc. bought a 50 per cent stake in the 183-room hotel close to the corner of Dalhousie and George streets, the real estate investment trust said Thursday in a news release.
The company also expanded its holdings into London, Ont. by buying the Residence Inn there.
The two hotels are Temple’s first purchases in Ontario. The Temple REIT until last year only owned hotels in British Columbia, Saskatchewan, Alberta, Manitoba and the Northwest Territories.
The announcement of the Dec. 31 acquisition is the latest in a series of shake-ups for Ottawa’s hotel market.
Quebec City-based boutique hotel chain Groupe Germain Hospitalité announced last November it would be adding a 148-room hotel as part of a condominium project on Slater Street.
Local real estate developer Claridge Homes has also applied to the city to have an office building at the corner of York and Dalhousie Streets rezoned to make way for a 14-storey hotel.
Temple intends to purchase the remaining 50 per cent of the Courtyard by Marriott at some point in the future, the company said in the news release.
The ByWard Market hotel contains 183 guest rooms, which were renovated in 2010-11, as well as 5,000 square feet of meeting and banquet space.
Temple says the $13.25 million purchase price represents a capitalization rate of approximately 10 per cent. It says it is financing the acquisition by assuming half of the existing first mortgage loan in the amount of $2.17 million, with the balance paid in cash.