Local bidders for Château Montebello disappointed their bid was not chosen

A group of local investors including Devcore president Jean-Pierre Poulin and Ottawa Senators owner Michael Andlauer is disappointed after losing a bid to purchase the Fairmont Château Montebello.

A group of local investors including Devcore president Jean-Pierre Poulin and Ottawa Senators owner Michael Andlauer is disappointed after losing a bid to purchase the Fairmont Château Montebello. On Monday, Poulin held a press conference in Gatineau to announce the news, adding that the successful bidder is a multinational hospitality group that is not based in Quebec. Poulin said he expects court-appointed receiver PricewaterhouseCoopers to make an official announcement in the coming weeks.  “It’s a very respectable and very respected group, with hundreds of hotels around the world,” he said. “We don’t know if they are Canadian ... They have offices in many countries, so we’re not sure.” Poulin was joined at the news conference by two of his bidding partners, Quebec-based entrepreneurs Edouard Wakim and Charles-Antoine Hallé of Elevate Real Estate. The group, which also included Groupe Nordik founder Martin Paquette, was prepared to pump more than $100 million into the property before it celebrates its 100th anniversary in 2030, Poulin told OBJ last week.  On Monday, Poulin said receiving the news last week was “a big shock.” “I was actually in Boston with the family. It was definitely a shock and not what we were expecting to find out. I was ready to crack a nice bottle of champagne open, but you know, it wasn’t the case. It was a pretty sad dinner.” According to Hallé, the group was among the top bidders, which made the decision even more disappointing.  “Only a couple of days before the official news came out we got the information that our bid was being considered among two or three other bidders and that our local narrative would make the difference because the offers were really similar to one another,” he said during the press conference.  “We’ve learned that what made the difference at the end of the day is probably the amount of money offered. Even though the three best offers on the table were really close in price, only a couple of hundreds of thousands of dollars have made the final difference.” Earlier this month, Poulin told OBJ the group had improved its initial bid “significantly” after PricewaterhouseCoopers gave qualified bidders “a last and final opportunity” to “revise and improve” their offers in June.  Speaking on Monday, Poulin said that, as developers, the group would have focused on improving the property and increasing its value while preserving its heritage. The group’s plans included a makeover of the marina and golf course and a new spa, as well as building another 125 hotel-condos next to the existing structure, raising the total number of suites to nearly 350.  While the group shared these details with the media, Poulin said it wasn’t able to include them in its bid to PwC. The bid could only include the group’s offer, proof of its ability to operate and of its ability to close the transaction, he said.  “We were never able to articulate our plan to PwC, so they couldn’t really judge us on the plan,” said Poulin. 

Still, Hallé said he thinks the message did get across. “We’re glad that we took that direction and we also think (the media coverage) actually made a difference in putting just the right amount of pressure,” he said.  Hallé added that if the successful bidders want to work with local partners, the group is available to assist.  “The invitation is already out there for the new owners of Château Montebello,” Hallé said. “Edouard lives 25 minutes away from the Château. I live in Gatineau. We really specialize in and love taking properties that have histories that need to be told or retold. We’ve bought historic properties like churches, schools and also older homes. We take on projects that are close to home that feel right and this was definitely one of those projects.” The group is disappointed that the historic property will not be returning to local hands, Hallé said, adding that he hopes the new owners will take local interests seriously.  “For us, it’s an asset that is not only an opportunity, not only an investment,” he said, “it’s really about celebrating Quebec history and for us to share that with the population.” Built in the 1930s, the log hotel was purchased by Chinese property developer China Evergrande Group in 2014. In 2024, the company was ordered by a court to liquidate its assets after incurring US$300 billion in liabilities with no plan to refinance. The resort has operated under the Fairmont banner since 2000. Fairmont Hotels and Resorts continues to manage the 21-hectare property, which features 211 hotel rooms, skiing and hiking trails, indoor and outdoor pools, an 18-hole golf course, a 100-slip marina and other recreation facilities.