The Royal York Hotel in Toronto has been sold for $186 million, with two real estate investment companies paying $137,000 for each room in the historic Front St. building.
The Caisse de dépôt et placement du Québec, the provincial pension fund and current owner of the Royal York, will keep a 20 percent stake in the property through its subsidiary Ivanhoé Cambridge.
The hotel’s current operator, Fairmont, will continue to run the hotel.
KingSett, an investment fund, will own 60 percent of the hotel. Real estate company InnVest, which owns 110 hotels with 14,000 rooms in Canada, will cover the remaining 20 percent.
The hotel was built in 1929. It was put on the market in May.
The Caisse de dépôt et placement du Québec has sold off most of its hotels. The Caisse has already sold the Chateau Laurier in Ottawa and hopes to sell the Hotel Vancouver and the Empress Hotel in Victoria, two of the oldest hotels on the west coast.