Fortis Properties Grows Hotel Portfolio by 50% with $32M Buy

ONTARIO-Four Ontario hotels containing a combined 630 rooms have been sold for USD$32 million. The Holiday Inn-branded hotels are located in the Ontario cities of Sarnia, Kitchener-Waterloo, Cambridge and Peterborough.

The seller was Irving, TX-based FelCor Lodging Trust Inc., one of the nation’s largest hotel REITs, which has been selling off smaller hotels in secondary markets. FelCor says it intends to use the proceeds to invest in urban hotels located in Canada, in a tax-free exchange transaction. The company still has 24 in strategic hotels for sale.

The new owner and manager is Fortis Properties, the real estate investment subsidiary of Fortis Inc., a St. John’s, Newfoundland-based generator and distributor of electricity. The acquisition is Fortis Properties’ first outside of Atlantic Canada and increases its hotel portfolio by 50%, from eight to 12 properties.