InnVest Real Estate Investment Trust
TSX : INN.UN

InnVest Real Estate Investment Trust

November 14, 2013 16:05 ET

InnVest Real Estate Investment Trust Announces Early Surrender of Hotel Lease

TORONTO, ONTARIO--(Marketwired - Nov. 14, 2013) - InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) announced today that it has entered into an agreement with the landlord of its leasehold hotel, the 328-room National Hotel and Suites located in Ottawa, for an early lease surrender effective December 31, 2013, by which time the hotel will also have ceased operations.

InnVest negotiated the early lease surrender as part of its strategic review and efforts to reposition its portfolio towards higher return properties. This leasehold hotel is estimated to generate negative cash flow of over $3 million in 2013. The lease was to expire December 31, 2016.

InnVest expects to recognize a provision of approximately $6.5 million during its fourth quarter primarily representing an early termination fee payable to the landlord, as well as employee severance obligations related to the closure of the hotel.

TRUST PROFILE

InnVest is an unincorporated open-ended real estate investment trust which owns a portfolio of 131 hotels across Canada representing over 16,500 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.

InnVest's units and convertible debentures trade on the Toronto Stock Exchange (the "TSX") under the symbols INN.UN, INN.DB.C, INN.DB.D, INN.DB.E, INN.DB.F and INN.DB.G.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are real estate investment risks, hotel industry risks, competition and the status of InnVest REIT as a REIT for Canadian federal income tax purposes in any year. These and other factors are discussed in InnVest REIT's annual information form for the year ended December 31, 2012, which is available at www.sedar.com. InnVest REIT disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.

Contact Information

  • InnVest Real Estate Investment Trust
    Chantal Nappert
    Vice President, Finance and Investor Relations
    (905) 624-7806
    (905) 206-7114 (FAX)
    www.innvestreit.com