Temple Hotels Inc. has entered into an agreement to purchase the Hotel Saskatchewan in Regina for $32.8 million.

Located at 2125 Victoria Ave., Hotel Saskatchewan first opened in 1927 as part of a chain of hotels constructed and owned by the Canadian Pacific Railway.

The 10-storey building consists of 224 guestrooms, as well as services such as a team room, exercise facilities, business centre and 13,922 square feet of meeting space. The site also includes a leased out barbershop, salon and spa, and bakery.

Temple will be undertaking a $6 million capital expenditure program over approximately three years. This will include guestroom and lobby renovations.

The acquisition price represents an estimated capitalization rate of 11.5 per cent, with the deal expected to close on March 31, 2014.

This is Temple’s fourth property in Saskatchewan, bringing their guestroom total to 771. Its other properties are the 179-guestroom Temple Gardens Mineral Spa Resort in Moose Jaw; the 118-guestroom Wingate Inn in Regina; and the 250-guestroom Saskatoon Inn & Conference Centre in Saskatoon.