Concord Hospitality Enterprises, Raleigh, North Carolina, on Tuesday announced the sale of four Marriott-branded hotels located in Ontario, Canada, to Genesis Hospitality, a Manitoba-based private investment group. Concord, owner and operator of 11 hotels in Canada, will continue to operate the hotels.
The hotels, all developed by Concord, include:
- The 132-suite Residence Inn by Marriott Toronto Vaughan
- The 94-room Courtyard by Marriott Mississauga Airport/Corporate Centre West
- The 133-suite Residence Inn Mississauga Airport/Corporate Centre West
- The 136-room and -suite Courtyard by Marriott Hamilton
“These four hotels bring our portfolio to 10 properties, and we have an aggressive appetite to build on that,” said Gary Buckley, a partner in Genesis Hospitality. “We have plans to continue to reinvest in these market-leading hotels to maintain their leadership within their respective markets.”
Mark Laport, CEO of Concord Hospitality Enterprises, noted that Concord has four properties in its Canadian development and acquisition pipeline and plans to break ground on at least two properties within the next three to six months. In addition, Concord will invest more than US$1 million each in upgrades at four of its remaining Ontario hotels, with completion expected by the end of the first quarter 2012.
“We expect to partner with more Canadian institutional and high net-worth investors to develop and acquire hotels,” Laport said. “We are in due diligence on projects in and around urban and close-in suburban markets in Ontario and Toronto and possibly several provinces in the Maritimes. We are seriously looking to expand our presence in Alberta, including Calgary and Edmonton, where we already operate one property that is currently undergoing a substantial renovation.”
Laport added that opportunities for hotel development in Canada have improved over the past year, but still remains difficult. “The Canadian economy did not decline as severely as its U.S. neighbor and is not rebounding as rapidly,” he pointed out. “Financing is still somewhat difficult, but improving, backed by a strong Canadian dollar. The coming year should be solid for hotels, but not spectacular, creating opportunities for well-capitalized companies.”