Bluesky Hotels and Resorts to buy InnVest Real Estate Investment for $2.1 bn
11 May 2016
Bluesky Hotels and Resorts yesterday struck a deal to buy the owner of Canada's largest hotel portfolios InnVest Real Estate Investment in a $2.1 billion, including debt.
InnVest's shareholders will receive $7.25 in cash for each InnVest share, a 33-per cent premium to Tuesday's closing price of C$5.47 of Toronto-based InnVest.
''This transaction is an investment that will establish a global platform from which Bluesky will continue to pursue growth opportunities in North America,'' Bluesky CEO, Li Chen, said in a statement.
InnVest REIT holds one of Canada's largest hotel portfolios and also holds a 50-per cent interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.
InnVest's portfolio comprises of 109 hotel properties, with approximately 14,500 rooms, operated under internationally recognized franchise brands.
Bluesky is a privately-held Canadian company, backed by Hong Kong capital, with an interest in developing a diversified asset portfolio of hotels, hospitality services, real-estate and other long-term holdings.
Upon closing of the transaction, Bluesky intends to maintain InnVest's senior leadership team and workforce, and maintain its headquarters in Toronto.