Toronto’s Royal York Hotel secures new owners

Tuesday, October 28, 2014

Toronto’s iconic Royal York Hotel now has new owners as InnVest Real Estate Investment Trust (InnVest) and KingSett Real Estate Growth LP (KingSett) are set to acquire the downtown landmark for a combined 80 per cent interest.

The remaining 20 per cent will be retained by Ivanhoe Cambridge, the real estate branch of current owner, Caisse de dépôt et placement du Québec.

The companies will buy the hotel for a total of $186.5 million, or $137,000 per room.

“With the nearing completion of the Union Station enhancements, as well as the introduction of the Pearson Airport Rail Link, the Fairmont Royal York’s location places it at the commercial, cultural and transportation crossroads of Toronto,” says Ed Pitoniak, managing director of InnVest.

Pitoniak adds the acquisition is a significant step forward in the company’s long-term goal to become the foremost growth platform in Canada’s lodging industry.

InnVest will become the asset manager and oversee the hotel’s hospitality operations, while KingSett will become the managing partner.

Over the years, The Royal York has become home to many visiting dignitaries including Queen Elizabeth II and other royalty, adding to the cachet of the 85-year-old hotel.

The new owners wish to retain the hotel’s grandeur and are slated to invest more than $50 million of additional funds pending the sale.

A $100-million renovation is already underway, including the overhaul of 500 guest rooms, with potential to further revamp property features like the hotel’s retail space.