Northampton Group Inc.
TSX VENTURE : NHG
TSX VENTURE : NHG.DB

Northampton Group Inc.

May 15, 2006 16:17 ET

Northampton Increases Ownership Interest in Two Investments

TORONTO, ONTARIO--(CCNMatthews - May 15, 2006) - Northampton Group Inc. (TSX VENTURE:NHG)(TSX VENTURE:NHG.DB), an integrated Canadian hotelier, is pleased to announce that it has increased its ownership interest in two of its hotel portfolio investments.

Northampton Inns (Oakville East) Inc., an investment of Northampton Group Inc. through its 60%-owned subsidiary 410613 Ontario Limited, has repurchased 238 of its own common shares, representing a 37.25% interest, from an existing shareholder, for $2,345,845. Northampton Inns (Oakville East) Inc. paid $469,169 in cash with the balance payable annually over 4 years at 7.5% interest.

As a result of this transaction, Northampton Group Inc.'s indirect ownership will increase from 37.25% to 59.35% of Northampton Inns (Oakville East) Inc., which operates as the Holiday Inn Express Hamilton and the Country Inn Oakville, Ontario. This change in share ownership will enable Northampton Group Inc. to consolidate the financial results of Northampton Inns (Oakville East) Inc., which were previously accounted for by the equity method. The ownership increase is immediately accretive to both sales and profits.

In another transaction, a subsidiary, Northampton Inns (Oakville) Inc., which operates the Quality Hotel & Suites Oakville, Ontario, repurchased 18,600 of its common shares from an individual shareholder. Northampton Inns (Oakville) Inc. paid $234,000 in cash.

Following this transaction, Northampton's direct and indirect ownership interest in Northampton Inns (Oakville) Inc. will increase to 52.34% from 50.76%. The results of this hotel were already being consolidated in Northampton Group's financial results.

About Northampton

Northampton Group Inc. is an integrated Canadian hotelier with ownership and management interests in 2,064 rooms in 16 hotels. Focused on creating the best return for all stakeholders, Northampton's proven, market-sensitive strategy is to acquire or build hotels that provide superior overnight accommodation in the mid-price market. Northampton has demonstrated that it excels in this sector, offering services that exceed expectations while still posting industry-leading margins. Northampton won Hotelier Magazine's Top Growth award for fiscal 2003 and 2004, in addition to consistently winning franchisor and local business awards for all of its hotels.

Shares Outstanding: 23,937,577


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Contact Information

  • Northampton Group Inc.
    Vinod Patel
    C.E.O.
    (905) 629-9992
    (905) 629-9636 (FAX)