Pandox has entered into an agreement to sell InterContinental Montreal in Canada to an unnamed buyer for $59 million.
The sale includes both the hotel property and hotel operations with the deal expected to close in the first quarter of 2023.
Although Pandox did not name the buyer it said it was a “well-established real estate investor and developer with operations in eastern Canada.”
The InterContinental Montreal has 357 rooms and is operated under a management agreement. In 2019, the hotel, which is reported in Pandox's operator activities unit, had revenues of approximately $22 million and a net operating income of approximately $3.7 million.
Liia Nõu, CEO of Pandox, said:
"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.”