A west-end Ottawa hotel is among 14 lodgings Morguard Corp. is selling to an undisclosed buyer for $410 million as part of its plan to focus on its core real estate investments, including office, industrial, retail and multi-suite residential properties.
The Toronto-based company said Monday the portfolio that is changing hands includes the 115-room Holiday Inn Express & Suites Ottawa West on Robertson Road.
“While we are unable to disclose any further details on the transaction, it is an ideal time to sell based on the performance of our hotel portfolio and the demand in the investment market for these types of high-quality hotels,” Morguard chief financial officer Paul Miatello said in a statement to OBJ.
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The package includes Marriott, Hilton, IHG and independent hotels in major cities across Canada.
Morguard chair and chief executive Rai Sahi said the company has strategically divested its hotel portfolio to align with its objectives of strengthening the company’s balance sheet while owning a high-quality portfolio of income-producing real estate.
The company will keep ownership of two hotels, including the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa and the Inn at the Quay in New Westminster, B.C.
After it repays $48.7 million in first-mortgage debt, Morguard says its net proceeds from the sale will be $361.3 million.
The deal is subject to customary closing conditions and is expected to close in the first quarter of 2024.
– With additional reporting from OBJ staff
