Pandox to Sell InterContinental Montreal for CAN $80m
Main Photo: The InterContinental Montreal
Date: September 2022
Name: The InterContinental Montreal
Location: Saint Antoine Ouest, Montreal, Quebec, Canada
Number of Keys: 337
Seller: Sweden’s Pandox, who acquired the hotel in 2007 for CAN$49m, from a JV of InterContinental Hotels Group and Cadim, a division of the Caisse de dépôt et placement du Québec
Buyer: TBA….the buyer is a well-established real estate investor and developer with operations in eastern Canada
Pandox AB has entered into an agreement to divest InterContinental Montreal in Canada. The sale includes both the hotel property and hotel operations with a total transaction value of approximately CAD $80m, corresponding to approximately SEK 660m. The closing is planned to take place in the first quarter of 2023.
“We are pleased to have signed an agreement to sell InterContinental Montreal, which we have owned since 2007 and have developed in stages since then. The timing is right, the sale price is attractive, and the buyer has a strong local presence in Montreal. With the sale, we prove that Pandox’s value creation model works well in all our markets. The divestment realises value and frees up capital for continued expansion in our main markets”, says Liia Nõu, CEO of Pandox.
The InterContinental Montreal has 357 rooms and is operated under a management agreement. In 2019, the hotel, which is reported in the business segment Operator Activities, had revenues of approximately CAD $30m and a net operating income of approximately CAD $5m.
The transaction is made in form of divestment of assets and liabilities and is expected to be finalised in the first quarter of 2023, following a customary due diligence process, according to Canadian practice, where the buyer pays a deposit that is forfeited if the transaction is not completed.
Price: CAN $80m
Price Per Key: CAN$ 237,389
THPT Comment: That price seems remarkably low, but hey these are crazy times and still gives Pandox a 60% uplift on the buy price 15 years ago, less their investment in upgrading the property
First Seen: Pandox press release
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