Transat A.T. Inc. has announced it is selling its interest in H10 Hotels in order to invest in its own hotel chain.
The agreement was signed with Ocean Hotels for the sale of the minority 35% share of H10 Hotels for an amount of US$150.5 million (Cdn$190 million). The sale price is subject to adjustments at the time of the closing of the transaction by November 2, 2017.
Transat says it is selling in order to accelerate the development of its own hotel chain in the South.
"Owning a minority position in Ocean has been a valuable venture for Transat both economically and strategically, allowing us to develop an expertise and insight into the hotel business. Being a minority owner was no longer an interesting use of our capital as we embark on further investments in the sector," said Jean-Marc Eustache, President and Chief Executive Officer, Transat.
"We want to control our own destiny, and this transaction is the ideal springboard for building a hotel chain that reflects our style. Our hotel division will take shape in the near future, including with the hiring of a president to lead it."
According to Transat spokeswoman, Odette Trottier, the operator now has "the latitude we need to build, hotel by hotel, a chain that reflects our style. We want to provide our customers with a travel
experience that we can totally adapt to their needs. We will take advantage of
every good opportunity to build, buy and manage hotels at our main Sun
destinations: Mexico and the Caribbean."
Although Transat had considered buying all of Ocean Hotels, the sale of its minority interest as well as the proceeds from the sale of its tour operating activities in France and Greece last October, will support the company's creation of its own hotel development project.
Open Jaw has been told that further details about the project will be provided at the end of the year.