Ivanhoé Cambridge, the Caisse de dépôt et placement du Québec’s real estate arm, plans to sell two of its hotels, the Fairmont Royal York in Toronto and the Fairmont Hotel Vancouver.
“We expect significant interest from Canadian and foreign potential buyers as these are iconic, ideally located landmarks in their respective markets,” says Sylvain Fortier, executive vice-president, residential, hotel and real estate investment funds, with Ivanhoé Cambridge.
He adds that hotels have been identified as a non-strategic asset class as it did not meet the company’s investment objectives. The Caisse began exiting the asset class in 2012.
“We recently sold a portfolio of 18 hotel properties in Europe and sold the Château Laurier in 2013,” Fortier says. “From about 70 hotels, only seven are left to sell, all located in North America.”
Ivanhoé Cambridge intends to use the capital from these sales in key assets, principally in shopping centres, office properties and multi-residential/multi-family properties where it can generate better risk-adjusted returns.
The company will hold on to just three hotels: the W Montréal, the Fairmont Queen Elizabeth in Montreal and the Château Frontenac in Quebec City.
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