While headlines for the first few months of 2016 were abuzz with news of the Starwood/Marriott merger originally announced in late 2015, the second half of the year saw its own share of M&A activity.
In July, Toronto-based InnVest Real Estate Investment Trust — one of Canada’s largest hotel portfolios — was scooped up by Hong Kong-backed Bluesky Hotels and Resorts, Inc., for a cool $2.1 billion. In the deal, which closed in August, Bluesky acquired all of the issued and outstanding units of InnVest for $7.25 in cash per unit for an aggregate of approximately $974,504,697.
Early September saw APA Hotel Group, the largest hotel network in Japan, acquire Canadian-based Coast Hotels. The acquisition, which marked a new era of expansion into North America for the Tokyo-based company, adds 38 branded Western North American properties to the APA portfolio, bringing its total to more than 400 locations.
M&A activity continued in September when Red Lion Hotels Corporation (RLHC) entered into a definitive agreement to buy the global brands and brand operations of Florida-based Vantage Hospitality Group, Inc. for an initial aggregate price of $23 million in cash and 690,000 shares of the company’s common stock. Vantage currently has 35 Canadian-franchised properties totalling 1,737 rooms.
Then, on Sept. 14, Colliers International announced the sale of the Pantages Hotel Toronto Centre –— on behalf of Skyline International Development –— to Silver Hotel Group for an undisclosed price. The Pantages Hotel Toronto Centre was built in 2004, near Yonge-Dundas Square — one of North America’s hottest real-estate markets. The premium property, comprised of 164 large condo-style hotel and residential suites with floor-to-ceiling windows, represents Silver Hotel Group’s expanding portfolio of independent hotels in the downtown-Toronto hotel market.
Finally, Lakeview Hotel Investment Corp. (LHIC) sold its Lakeview Inn & Suites – Edson East hotel in Edson, Alta. for $2.9 million. All net proceeds from the sale, brokered by Colliers International Hotels, are intended to be used for debt reduction. The purchaser has entered into a 15-year license agreement, which will see the hotel continue to operate as a Lakeview Inn & Suites. LHIC will share in the ongoing licensing revenue.