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cp buys delta

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CP Hotels owns Delta Canadian chain goes international By Chris Woodall The big just got a whole lot bigger: Canadian Pacific Hotels has acquired Delta Hotels. The deal was originally made in March, but closed in May. Whistler won't see much change as a result because CP Hotels intends to keep Delta as a distinct brand name and managed separately from the Chateau Whistler, CP’s flagship Whistler hotel. The Chateau Whistler is managed by CP Hotel's although it is owned by Yamanouchi Pharmaceutical. Delta operates 28 hotels under the Delta name and six others under different brand names across Canada, as well as properties in Florida, Arizona, Cuba, Dominican Republic, and several locations in Southeast Asia. The agreement was between CP Hotels, and the Realstar Group in Toronto and the Lai Sun Group in Hong Kong. Delta's Whistler properties included the Delta Whistler Resort, the Delta Suites Hotel, and the Tantalus Lodge. Delta's largest hotel is the 1,594-room Delta Chelsea in Toronto's theatre district. The Delta Orlando Resort is 800 rooms, but most of the rest are 200-400 rooms in size. Under the terms of the deal, CP Hotels paid approximately $94 million to acquire the management company and the brand. The acquisition will be funded from cash on hand within the Canadian Pacific group. The deal will give CP Hotels flexibility in terms of future purchases and a strong platform for growth, says William Fatt, CEO of CP Hotels. "This purchase gives us a solid entry into a new market through an established brand and will allow us to target properties for acquisition, both nationally and abroad, that would perform well under the Delta flag," Fatt says. Delta's high-end level of service made it a complimentary buy, Fatt says. No change in hotel management personnel is anticipated because of the purchase, CP Hotels says, although president of CP Hotels Chris Cahill will become president of Delta, too.

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