MISSISSAUGA, Ont. — Morguard Corp. says it has signed a deal to sell a portfolio of 14 hotels 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 package includes Marriott, Hilton, IHG and independent hotels in major cities across Canada.
Morguard chair and chief executive Rai Sahi says 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.
This report by The Canadian Press was first published Jan. 8, 2024.
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