ST. JOHN’S, N.L. — Fortis Inc. announced that it will review strategic options for its hotel and commercial real-estate business, operating under its wholly owned subsidiary St. John’s, N.L.-based Fortis Properties Corporation.
Fortis Properties, owns and operates 23 hotels in eight Canadian provinces, primarily in Atlantic Canada. Its major hotel brands include Delta, Sheraton, Hilton, Holiday Inn, Ramada and Best Western. Some of its real-estate holdings in Atlantic Canada include Cabot Place, Maritime Centre and the Blue Cross Centre.
In 2013, Fortis Properties generated revenues of approximately $250 million and had earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $80 million.
“The review of Fortis Properties will explore various strategic options for this non-utility subsidiary, which currently comprises approximately three per cent of the corporation’s total assets,” said Barry Perry, president of Fortis. Strategic options may include, but are not limited to, a sale of all or a portion of the assets, a sale of shares of Fortis Properties or an initial public offering.
Fortis has engaged CIBC World Markets Inc. and CBRE Limited as advisers for this review. This process is expected to begin in the coming weeks and continue through 2014 and into 2015. This process may or may not result in any transaction.