Oxford Properties Group is planning to sell a 50 per cent stake in several prominent Fairmont resort hotels across B.C. and Alberta.
The four properties are located in Whistler, B.C. and Lake Louise, Banff and Jasper, Alberta. A source with knowledge of the plans places the potential transaction value at upwards of $1 billion, according to Bloomberg News. The portfolio has a combined total of 2,200 units, welcoming more than a million guests a year.
Jones Lang LeSalle Inc. has been contracted to help sell the stake, according to the source who wishes to remain anonymous. Oxford Properties confirmed it is planning to sell the stake, but declined to comment on how much the eventual sale could be worth.
"This decision is in line with our overall strategy to grow our global partner program, which now manages over $18 billion in third party capital," said Eric Plesman, head of Oxford Properties Canada, in a statement.
Toronto-based Oxford Properties-a real estate management branch of OMERS, one of Canada's largest pension plans-will go onto manage the Fairmont and Fairmont Ch‰teau-branded hotels. The group acquired the four hotels as part of a larger portfolio in 2006 that included Fairmont Vancouver Airport and two Quebec properties. The YVR hotel and Quebec properties have since been sold.
The remaining properties are located at 4599 Chateau Blvd., Whistler; 111 Lake Louise Dr., Lake Louise; 405 Spray Ave, Banff; 1 Old Lodge Rd, Jasper.
Oxford manages more than $26 billion in assets, up 35 per cent in just the last five years.