Morguard says it has signed a deal to sell a portfolio of 14 hotels for $410 million as part of its plan to focus on its core real estate investments, including office, industrial, retail, and multi-suite residential properties. THE CANADIAN PRESS/HO
Morguard Corp. has announced the signing of an agreement to offload a portfolio of 14 hotels for $410 million, aligning with its strategic shift towards core real estate investments such as office, industrial, retail, and multi-suite residential properties. The package comprises Marriott, Hilton, IHG, and independent hotels situated in key cities across Canada.
Rai Sahi, Chair and CEO of Morguard, emphasized the strategic divestment of the hotel portfolio as a move to reinforce the company's financial position while retaining ownership of a high-quality, income-generating real estate portfolio.
As part of the deal, Morguard will maintain ownership of two hotels, including the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa, and the Inn at the Quay in New Westminster, B.C.
Upon settling $48.7 million in first mortgage debt, Morguard anticipates net proceeds of $361.3 million from the sale. The transaction is contingent on standard closing conditions and is slated to conclude in the first quarter of 2024.
