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.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

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.

Read more on

Suggested Articles

Should all of 2020's scheduled hotels come online as planned, China will open the most new rooms next year since the cyclical peak in 2014.

The debuts consist of a Hampton Inn, a Tapestry Collection and a Homewood Suites and total 410 rooms.

DTZ Investors has purchased the property along with other real estate for more than £70 million.