Morguard has completed the sale of a Canadian 14-hotel portfolio for $410 million to an institutional investor, the company announced Friday.

The 2,248-room portfolio contains Marriott, Hilton, IHG and independent hotels in major urban centres, including the Greater Toronto Area, Ottawa, Halifax and Sudbury, Ont. The largest asset is the 424-room Toronto Airport Marriott.

“We are pleased to have capitalized on the current market demand for high-quality hotels,” said Rai Sahi, Morguard’s chairman and CEO in a news release. “This positions us well for future growth.”

Earlier this month, Mississauga, Ont.-based Morguard announced that it had entered into an unconditional agreement to sell the portfolio. Upon closing the deal, Morguard repaid first mortgage debt totalling $48.7 million, achieving net proceeds of $361.3 million before closing costs and customary adjustments. 

“The liquidity provided by this transaction demonstrates Morguard’s commitment to reduce indebtedness and pursue its core business objective of owning and managing a diversified real estate portfolio of office, industrial, retail, and multi-suite residential properties,” said the company.

Morguard has retained ownership of the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa and the Inn at the Quay in New Westminster, B.C.

Photo: Cambridge Suites Hotel, Halifax/Trip.com