ST. JOHN’S, N.L. – Fortis Inc. says it has signed a deal to sell the hotel assets of subsidiary Fortis Properties Corp. to a private investor group for $365 million as the company moves to focus on its core utilities business.
The transaction, involving 22 hotels in seven Canadian provinces, is expected to close in the fall. The private investor group was not identified in a Fortis release.
The sale of Fortis Properties’ commercial real estate portfolio for $430 million was completed last month.
“The disposition of these hotel and real estate assets is consistent with the corporation’s focus on its core utility business,” said Fortis Inc. president and CEO Barry Perry.
“Post closing of the hotel transaction, virtually all of the corporation’s assets will be comprised of regulated utilities and long-term contracted energy infrastructure,” Perry added.
Fortis is in the North American electric and gas utility business, with assets totalling some $28 billion serving more than three million customers across Canada and in the United States and the Caribbean.
Nora Duke, well-known and respected in the Canadian hotel industry, has been president and CEO of Fortis Properties Corporation since 2007, and has worked with the company since 2003. Prior to that she was vice-president, customer and corporate services for Newfoundland Power, another Fortis company.
“Post closing, I will continue to work with Fortis in a new capacity that will be unrelated to the hotel industry,” Duke told CLN. “A big change, but one I am looking forward to.”