Allied Hotel Properties Inc.

May 03, 2010 20:53 ET

Allied Hotel Properties Inc. Announces Satisfaction of Purchaser's Condition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 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 (the "Property").

The Agreement was subsequently amended (the "Amended Agreement") whereby Allied agreed to provide a Vendor Take-Back mortgage ("VTB") in the amount of $19,000,000, which carries interest at 6% per annum, payable monthly, and matures on August 1, 2011. The VTB shall be secured by a first charge against the Property. The Purchaser shall also grant Allied a General Security Agreement, a General Assignment of Rents and Leases and a Personal Guarantee granted by a principal of the Purchaser as additional security.

This transaction was subject to certain conditions for the benefit of the Purchaser and Allied including the Purchaser's inspection of the hotel property, income and expense statements, contracts, leases and any reports or investigations conducted by the Purchaser. The Purchaser has given notice that the inspection condition has been satisfied in accordance with the Agreement and the Amended Agreement and has unconditionally released to Allied a total non-refundable deposit of $1,000,000. The parties anticipate completing the transaction on or about June 1, 2010.

Allied is a hotel ownership and management company. Its hotel portfolio consists of the Crowne Plaza Chateau Lacombe in Edmonton, Alberta and the Toronto Don Valley Hotel & Suites in Toronto, Ontario. Allied also owns an 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

On behalf of the Board of Directors:

Mr. John R. Ellen, Secretary and Chief Financial Officer

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information