The majority buyer of Morguard Corp.’s hotel portfolio has emerged.
InnVest Hotels has acquired 10 of the 14 properties Morguard was shedding across Ontario and Halifax, including the Courtyard by Marriott Toronto Airport, Hotel Carlingview Toronto Airport, Residence Inn by Marriott Toronto Airport, and Toronto Airport Marriott.
The hospitality group has also purchased the Courtyard Marriott Markham, Residence Inn Marriott - Markham, and Courtyard Marriott Vaughan, as well as the Towne Place Suites by Marriott in Sudbury and Halifax’s The Prince George Hotel and Cambridge Suites Hotel Halifax.
The "strategic acquisition" bolsters InnVest’s hotel offerings in the Greater Toronto Area, and marks its return to the Halifax market. The sale brings InnVest’s portfolio of Marriott-branded properties to 14, making it one of the largest owners of the chain in Canada.
The company operates approximately 100 hotels across nine provinces, with brands including Sheraton, Fairmont, Hyatt, and Holiday Inn.
"We are delighted to announce our largest acquisition since 2007 which demonstrates confidence in our vertically integrated hospitality organization and the Canadian hotel market," said Lydia Chen, President and CEO of InnVest. "We welcome the 766 new team members that have joined our organization."
The Marriott Toronto Airport will continue to be managed by Marriott Hotels, while iHotels will oversee the remainder of the portfolio. Over the next few years, many of the properties will undergo a "multi-faceted" renovation in order to elevate guests’ experience.
"The successful conclusion of this deal is a testament to the appeal of our hotel portfolio and the strength of Morguard's management over the years," said K. Rai Sahi, Chairman and Chief Executive Officer of Morgaurd.
"We are pleased to have capitalized on the current market demand for high-quality hotels. This positions us well for future growth."
Earlier this month, Morguard revealed that it had inked a $410M deal to offload 14 of its hotels as it shifts its focus to its core real estate investments, including office, industrial, and retail properties.
Although the sale has now been completed, the price paid by InnVest for the majority of the portfolio has not been revealed, nor has the new owner of the remaining four properties, which include the Holiday Inn Express in Ottawa, the Courtyard Marriott Mississauga, Hilton Garden Inn Toronto Airport West, and Cambridge Suites Mississauga.