Maxfine International, a unit of TA Global, proposed to buy the Trump International Hotel and Tower in Canada for $93.24.
According to The Star Online, Maxfine said external borrowings and internally generated funds would be used in the acquisition. The decision to purchase the hotel comes from a push from TA Global to build on its hospitality business, which is looking to gain more footholds in major cities internationally.
The acquisition is expected to be completed in June 2016.
The Economic Times reported that the Trump Hotel Collection is planning on opening 30 hotels globally by 2020, with many of them in India. The Collection is targeting cities such as Mumbai, Delhi, Bangalore and Goa, with a focus on management contracts as a means to expand into the country.
India is already experiencing an influx of hotel openings, with an expected 144,000 new branded hotel room openings throughout 2017 and 2018, with nearly 40 percent of them constituting luxury and upscale brands. The Trump brand's involvement would be contributing to this increase in supply.
"Hospitality is a cyclical industry and by entering India at a relatively difficult time also means we get ourselves in pole position for the next 'up cycle,'" Shafi Syed, VP of development and acquisitions, Trump Hotel Collection, told the Economic Times. "Coming into India with the right development partner, location and the right deal structure is crucial, this takes time."
Earlier this month, Trump filed a lawsuit against the Trump Plaza Hotel & Casino and the Trump Taj Mahal to have his name removed from them before they shut down operations. According to NJ.com, Trump claims that, while he licensed his name to the casinos in 2010, the properties breached their agreement with him by failing as a business.