Hong Kong company buys Canada's SilverBirch Hotels & Resorts

DoubleTree by Hilton Hotel West Edmonton
The DoubleTree by Hilton Hotel West Edmonton is managed by SilverBirch Hotels & Resorts

Just a few weeks ago, we reported that the British Columbia Investment Management Corp.—a "pension fund giant"—was planning to sell SilverBirch Hotels & Resorts to Leadon Investment, a subsidiary of an unnamed private equity firm. 

Now, we hear that Leadon has formally acquired SilverBirch Hotels & Resorts, a portfolio of 25 hotel properties across Canada. BCIM sold the hotels in a US$843.2-million all-cash transaction. 

SilverBirch Hotels & Resorts has 25 hotels with 6,757 rooms across Canada’s 20 largest cities. The company manages hotels under the Marriott, Hilton and Radisson banners, as well as Delta hotels in Toronto, Calgary, Victoria and Halifax. The hotels sold at an average value of US$124,782/room. 

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.

Leadon Investment was founded in September 2016 with a legal registered office in British Colombia. According to the Globe and Mail, the company originated in Hong Kong, which would explain why some of the property sales were reviewed under the Investment Canada Act, which oversees foreign acquisitions valued at more than $600 million. 

Last year, Chinese investment increased in Canada up to about US$2 billion. 

Loeb & Loeb, working with Toronto-based Goodmans, provided legal counsel to the undisclosed private equity firm in connection with the acquisition, with a cross-border team of attorneys led by regulatory and transactional partner Stephen H. Cohen from Loeb & Loeb and real estate transactional partner Bram Green from Goodmans. 

Suggested Articles

The S.C.-based restaurant group picked hospitality veteran Larry Spelts to lead its new hotel management and consulting division.

The East Palo Alto, Calif., property features the intelligent gym and personal trainer in select guestrooms.

Infor cloud solutions now connect siloed applications and reduce manual processes for the California resort.