Canada's Fortis to sell 22 hotels as it refocuses on core

Canadian owner and operator Fortis Inc. has signed a deal to sell the hotel assets of subsidiary Fortis Properties Corp. to an as-yet unidentified private investor group for $365 million as the company moves to focus on its core utilities business.

Insiders say that the transaction, involving 22 hotels in seven Canadian provinces, is expected to close in the fall.

The sale of Fortis Properties’ commercial real estate portfolio for $430 million was completed last week.

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 disposition of these hotel and real estate assets is consistent with the corporation’s focus on its core utility business,” president and CEO Barry Perry told CanadianBusiness.com. “Post closing of the hotel transaction, virtually all of the corporation’s assets will be comprised of regulated utilities and long-term contracted energy infrastructure.”

 

Suggested Articles

The furloughs will affect those at its domestic owned properties as well as its corporate staff.

The company is reducing its corporate workforce 40 percent to approximately 100 full-time-equivalent employees.

As of April 2, more than half of Accor’s branded hotels were closed worldwide, a portion the company said could grow to two-thirds in coming weeks.