Fortis to explore sale, spin-out of hotels and other assets

Fortis Inc. has reportedly retained advisors to explore a sale, or spin-out of its hotel and commercial real estate business now operated and controlled by its wholly owned subsidiary Fortis Properties Corp., reports Reuters.

Canada's Fortis Properties operates some 23 hotels in eight Canadian provinces, including properties for brands such as the Sheraton, Delta, Hilton, Holiday Inn, Ramada and Best Western.

The assets reportedly generated revenues of about $250 million and had earnings before interest, taxes, depreciation and amortization of about $80 million in 2013.

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The review of Fortis Properties will explore various options, including but not limited to "a sale of all or a portion of the assets, a sale of shares of Fortis Properties or an initial public offering."

Fortis has engaged CIBC and CBRE as its financial advisors.

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