Chinese firm Bluesky in C$2.1b deal to buy InnVest

Toronto

BLUESKY Hotels & Resorts Inc, a closely held company backed by capital from Hong Kong, agreed to buy InnVest Real Estate Investment Trust for C$2.1 billion (S$2.2 billion), giving the Chinese firm a stake in some of Canada's most historic hotels and beachhead for expansion in North America.

Bluesky will pay C$7.25 a share, the companies said in a statement on Tuesday. That's a 33 per cent premium to Tuesday's closing price of C$5.47 for Toronto-based InnVest, including debt.

The deal will give Bluesky one of Canada's largest hotel portfolios with 109 properties, including a stake in Toronto's Fairmont Royal York Hotel, which was built in 1929 and host to British royalty. InnVest also holds a 50 per cent stake in Choice Hotels Canada Inc, one of the biggest franchisers of hotels …