TORONTO — Mississauga, Ont.-based InnVest Real Estate Investment Trust and Toronto-based KingSett Capital have acquired 80-per-cent interest in the Fairmont Royal York hotel. Current owner, Ivanhoé Cambridge, based in Montreal, will retain 20-per-cent interest in the property.
More specifically, KingSett will control 60-per-cent interest in the property, while InnVest will control 20-per-cent interest and become the hotel asset manager, overseeing operations alongside Toronto-based Fairmont Hotels and Resorts.
“With the nearing completion of the Union Station enhancements as well as the introduction of the Pearson Airport Rail Link, the Fairmont Royal York’s location places it at the commercial, cultural and transportation crossroads of Toronto,” said Ed Pitoniak, managing director of InnVest. “With the extensive renovations to the Royal York hotel’s infrastructure and guestrooms, this asset is poised to deliver strong earnings growth and benefit from its irreplaceable location in Toronto’s city centre.”
The 1,363-room Royal York Hotel was acquired for $186.5 million, or $137,000 per room.
Built in 1929, the Royal York is undergoing a $100-million renovation. An additional $50 million will be invested following the close of the transaction Jan. 30.