Temple to internalize management

Temple Hotels acquired Hotel Saskatechewan in Regina earlier this year.

Temple Hotels acquired Hotel Saskatechewan in Regina earlier this year.

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WINNIPEG—Temple
Hotels Inc. in October announced its intention to internalize its asset and
hotel management.

Given Temple’s recent
growth and continued acquisitions, management and the board of directors
believe that the future scale of operations will be sufficient to justify the
cost of an internal management team and structure. The management
internalization process is expected to be completed over a two-year period beginning
next year, and may include the purchase of an existing hotel management company
or the development of Temple's own management platform, or a combination of
both.

“Internalization of
the hotel and asset management functions is an important step in Temple's
growth,” Arni Thorsteinson, Temple chief executive officer, said in a release. “We believe that
proceeding with the internalization plan is in the best interest of
shareholders.”

Since beginning
operations in 2006, Temple has successfully relied on external management
provided by Atlific Hotels (hotel operations management) and Shelter Canadian
Properties Ltd. (corporate asset management services). The total cost of the
combined management services contracts are 3.5% of hotel revenues, which
amounted to approximately $6.5 million during the 12 months ended Sept. 30,
2014.