Wow – The host resort of the 201 G8 summit for sale? Wonder what the story behind that is? We all know the luxury resort hotel business took a hit in the financial crisis that is all over, never happened and didn’t affect many people anyway, but – weird to see this one as you have to assume the various Government Incs that caused the non-existent financial crisis in order to turn us all into debt slaves forever would have paid their bill. Or did they?………..
This is the CBRE press release:
CBRE Hotels (“CBRE”), announced today that it has been appointed Exclusive Advisor in the sale of Deerhurst Resort, just north of Toronto. A 100% freehold interest in the 400-room upscale resort is being offered on behalf of 1279342 Ontario Limited, Cornerstone Real Estate Advisers LLC and MassMutual Financial Group.
“This historic landmark property is the epitome of a classic Muskoka Resort and has been maintained to a very high standard,” said Gary Lloyd, Vice President, Hotel Group, Cornerstone Real Estate Advisers LLC. The asset was purchased in the late 1990s and more than $60M Cdn has been reinvested into this investment property since then. “This offering will have international appeal. It represents a unique opportunity to own a highly recognizable asset, in a beautiful part of the country,” said Bill Stone, Executive Vice President, CBRE Hotels.
“The market is ripe for this type of product and given the stability and relative strength of our economy and real estate industry, there has never been a better time to invest in Canada,” he added. Deerhurst Resort first opened with a lodge and two cabins in 1896. Over the years, it has grown to become an iconic golf and conference facility.
In part due to the anticipated worldwide transaction appeal and increase in demand for high quality, well located properties, with consistent historical operating results and value creation potential; Ownership has decided to continue with their plans for a disposition of the Property as Lloyd remarks: “With growing transaction momentum in North America, we feel the Asset will attract considerable interest from worldwide equity sources. The Resort offers both current income and numerous value add opportunities.”
The resort offers 400 guest rooms; 40,000 SF of meeting and exhibition space; seven food and beverage options; two 18-hole golf courses, two driving ranges and a golf school; a full service spa and salon; and features an active 3,000-foot airstrip. According to Stone, “This offering presents investors with a rare opportunity to acquire a key Canadian Resort with a premier reputation, exceptional golf facilities, and enormous growth potential.”
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I hope that they can get their money back out of it. 60 million canadian is a big sum of money for only a 400 room hotel unless their conferences are pulling in some serious money. My guess is they are debt heavy from the reinvestment and that is why they are selling.
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