On February 16, 2005, Massachusetts-based Hospitality Properties Trust (HPT) acquired 12 hotels from InterContinental Hotels Group (IHG) with an aggregate value of US$420 million.
The transactions involved the purchase and sale of the InterContinental Toronto Hotel located on Bloor Street (210 rooms) and the Staybridge Suites Markham Hotel (120 rooms) for a combined allocated purchase price of approximately US$35 million.
Of the 10 other hotels, nine were located in the continental US, and one in Puerto Rico. The parties also agreed to the sale of Stephen F. Austin InterContinental Hotel in Austin, Texas for an additional US$30 million.
Simultaneously with HPT’s purchase of these hotels, HPT entered into a long term management agreement with IHG, which will continue to manage 11 of the 12 hotels, including the InterContinental Toronto Hotel and the Staybridge Suites Markham Hotel, and entered into a long term lease with IHG for the InterContinental Hotel in San Juan, Puerto Rico.
This transaction included the first Canadian investments by HPT, which now owns 297 hotels located throughout the US, Puerto Rico and Canada.
HPT was represented by Sullivan & Worcester LLP with a team led by Ameek Ponda and Sander Ash, and which included John Balboni, Louis Monti and Elizabeth Wigon (real estate), Robert LeDuc and David Nagle (tax), and Richard Teller, Miguel Vega and Walter VanBuskirk (corporate); in Puerto Rico by Pietrantoni Mendez & Alvarez LLP with a team led by Ignacio Álvarez (corporate), Antonio Santos-Prats (real estate) and Edgar Ríos-Méndez (tax); and in Canada by Stikeman Elliott LLP with a team led by Brenda Hebert and assisted by Savvas Kotsopoulos (real estate) and John Lorito and Trevor McGowan (tax).
IHG was represented in the US by Alston & Bird LLP with a team led by Pinney Allen, Tim Pakenham and Dan Weede, assisted by Catherine Morgen and Brooke Reid; in Puerto Rico by O’Neill & Borges with a team led by Walter Chow; and in Canada by Blake, Cassels & Graydon LLP with a team led by Beth Gearing (corporate) and Joan Kennedy (real estate), and assisted by Tim Bermingham (municipal) and Paul Tamaki and Greg Kanargelidis (tax). Stephen Shamie of Hicks Morley Hamilton Stewart Storie LLP provided labour and employment advice.