A group of local investors that includes real estate entrepreneur Mike McGahan has purchased a boutique hotel on Queen Street that was built by developer Ashcroft Homes Group. McGahan told OBJ Friday he is part of 101 Queen Street Limited Partnership, which has acquired reStays, an extended-stay hotel with 111 fully furnished suites. The group […]
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A group of local investors that includes real estate entrepreneur Mike McGahan has purchased a boutique hotel on Queen Street that was built by developer Ashcroft Homes Group.
McGahan told OBJ Friday he is part of 101 Queen Street Limited Partnership, which has acquired reStays, an extended-stay hotel with 111 fully furnished suites. The group also bought 19 unoccupied condominium units that are part of the attached reResidences complex at 101 Queen St.
Completed in 2020, the luxury boutique hotel was put up for sale after Ashcroft Homes was forced into receivership last year. According to court documents, the company, which built thousands of homes, condos, apartment and retirement home units in the Ottawa area, owed $284 million to banks and other creditors.
McGahan did not reveal the sale price, which remains sealed under the court process. The Ontario Superior Court of Justice approved the transaction in late July and the deal officially closed in mid-August.
According to Cushman & Wakefield, which helped broker the sale on behalf of receiver AlixPartners, the property is structured across four distinct condominium corporations and held under a long-term ground lease with the National Capital Commission.
McGahan, who owns Ottawa-based real estate development and property management firm CLV Group, said the new ownership group includes well-known tech entrepreneurs, restaurateurs and executives from the health and wellness industry.
“We think there’s a lot that can happen here at this property,” he said. “It’s a pretty iconic location.”
The hotel features a range of studio, one- and two-bedroom units that can be rented anywhere from one night to more than 12 months. All suites have washers, dryers and full kitchens and the building includes amenities such as a fitness centre, games room, movie theatre and a 12th-floor bar and lounge with views of the Parliament Buildings.
“It’s a great facility and probably some of the best sight lines that you could ever see,” McGahan said. “Full credit to Ashcroft for what they've done. We’re just going to try to take it to another level. We have a plan and you’ll see what we end up doing as things unfold. You’ll definitely see some changes.”
The property also features 190 underground parking spaces and 20,440 square feet of ground-floor commercial space that is currently vacant.
“We’re kind of hammering out what we’re going to do,” McGahan said of the empty retail space. “We think there’s a lot of stuff that we can do there.”
CLV Group is taking over management of the property. McGahan said the new owners are excited about the site’s potential to help reinvigorate the downtown core, adding the hotel will likely be rebranded in the coming months.
“We still have a long way to go, but I'm very hopeful that (efforts to revitalize downtown) will keep progressing,” he added. “There’s a lot of hard work still to be done. The downtown is so important to the whole vibrancy and sustainability of our city.” 
