MONTREAL — Transat A.T. Inc. has signed an agreement with H10 Hotels for the sale of its minority interest in Ocean Hotels for $190 million.
In a release, Transat says the move to sell its stake in Ocean Hotels is intended to help accelerate the development of its own hotel chain “in the South.”
“Owning a minority position in Ocean has been a valuable venture for Transat both economically and strategically, allowing us to develop an expertise and insight into the hotel business. Being a minority owner was no longer an interesting use of our capital as we embark on further investments in the sector,” says Jean-Marc Eustache, president and chief executive officer, Transat. “We want to control our own destiny and this transaction is the ideal springboard for building a hotel chain that reflects our style. Our hotel division will take shape in the near future, including the hiring of a president to lead it.”
H10 already owns 65 per cent of Ocean Hotels, making the agreement subject to certain usual conditions. The sale price is subject to adjustments at the time of the closing of the transaction by November 2, 2017, and after if necessary.