VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 10, 2010) – On February 22, 2010 Allied Hotel Properties Inc. (“Allied”) (TSX VENTURE:AHP), through a wholly owned subsidiary, entered into a hotel purchase agreement (the “Agreement”) with an arm’s length third party purchaser (the “Purchaser”) whereby Allied agreed to sell and the Purchaser agreed to purchase the Crowne Plaza Chateau Lacombe hotel (the “Property”).
Allied is pleased to announce that this transaction has now closed. The purchase price of $47.8 million was satisfied by $36.0 million cash and a vendor take-back mortgage (the “VTB mortgage”) in the amount of $11.8 million. The VTB mortgage is secured as a second charge against the hotel property and by a personal guarantee from a principal of the Purchaser. The VTB mortgage carries interest at a rate of 7.5% per annum, payable monthly, and matures on October 5, 2012. Allied will continue to manage the hotel on behalf of the new owner.
Allied is a hotel ownership and management company. Its hotel portfolio consists of the Crowne Plaza Chateau Lacombe in Edmonton, Alberta (management only) and the Toronto Don Valley Hotel & Suites in Toronto, Ontario (ownership and management). Allied also owns a 50% undivided interest in the Residence at Accolade Inc., a condominium development adjacent to the Toronto Don Valley Hotel & Suites. Interested parties can find further information at www.alliedhotels.com.
On behalf of the Board of Directors:
Mr. John R. Ellen, Secretary and Chief Financial Officer