The Hyatt Regency in Vancouver, the Fairmont Palliser hotel in Calgary, the Hotel MacDonald in Edmonton and more than 100 other hotels across Canada will change hands in a $2.1 billion megadeal.
Under the all-cash deal, BlueSky Hotels & Resorts Inc. – a private company backed by capital from Hong Kong – will buy Toronto-based InnVest Real Estate Investment Trust (INN.UN-T).
InnVest had bought the 644-room Hyatt Regency for $140 million in late 2014.
The latest deal will give BlueSky one of Canada’s largest hotel portfolios, which includes 109 properties and a stake in some of Canada’s most historic hotels.
InnVest also holds a 50% stake in Choice Hotels Canada Inc., one of the country’s biggest franchisers of hotels.
BlueSky is offering $7.25 cash for each InnVest Real Estate Investment Trust unit, which is 33.5% above InnVest’s May 10 closing unit price of $5.47.
The BlueSky transaction is expected to close in 2016’s third quarter.
