Morguard Closes On Sale Of 14 E. Canadian Hotels For $410m

Morguard Closes On Sale Of 14 E. Canadian Hotels For $410m

UPDATED WITH SALE CLOSING: Morguard Corp. has sold a portfolio of 14 hotels in eastern Canada for $410 million.

Morguard stated the move aligns with its “commitment to optimize its real estate portfolio, focusing on core real estate investments, including office, industrial, retail, and multi-suite residential properties.”

Morguard did not originally divulge the buyer, but InnVest Hotels of Toronto has acquired 10 of the properties.

The hotels Morguard sold are located in Halifax, Ottawa, four communities in the Greater Toronto Area and Sudbury and comprise a total of 2,248 rooms (see complete list below).

“It is an opportune moment to divest these properties given the current market demand for a hotel portfolio of this size and quality, as well as their enhanced market value,” K. Rai Sahi, Morguard’s chairman and chief executive officer, said in the release.  “Morguard has strategically divested our hotel portfolio to align with our objectives of strengthening the company’s balance sheet while owning a high-quality portfolio of income producing real estate.”

In a separate release, InnVest said it acquired 10 properties in the Greater Toronto Area, Sudbury and Halifax. It acquired a total of 1,737 guest rooms with the portfolio, and 40,000 square feet of convention and meeting spaces.

InnVest plans to initiate a “multi-faceted renovation over the coming years to elevate the guest experience” the release states.

“We are delighted to announce our largest acquisition since 2007 which demonstrates confidence in our vertically integrated hospitality organization and the Canadian hotel market.  We welcome the 766 new team members that have joined our organization.” Lydia Chen, president and CEO of InnVest, said in its release.

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