Sunday, July 15, 2007

Canada hotel group gives nod to deal in Shanghai

Canada hotel group gives nod to deal
By Hui-yong Yu 2007-7-14
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LEGACY Hotels Real Estate Investment Trust, the Canadian owner of the Fairmont Le Chateau Frontenac in Quebec City, has agreed to be bought by a group, including InnVest Real Estate Investment Trust, for C$1.46 billion (US$1.4 billion).

The group will pay C$12.60 per unit for Toronto-based Legacy, which is part-owned by Fairmont Hotels & Resorts Inc. The purchase price is 14 percent less than the company's shares on June 15. InnVest was joined by Caisse de depot et placement du Quebec and Westmont Hospitality Group in making the purchase, Bloomberg News said.

Legacy put itself up for sale on March 1, sending the stock to as high as C$14.58 last month before the company said a potential buyer was interested at a lower price. The company has 25 hotels, including the Fairmont Washington D.C. and the Fairmont Empress in Victoria, British Columbia.

"The price offered fairly reflects the underlying value of these assets," Legacy Chief Executive Officer Neil Labatte said in a statement.

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