Morguard Completes $410 Million Sale of Hotel Portfolio

MISSISSAUGA, ON, Jan. 19, 2024 /CNW/ - Morguard Corporation ("Morguard") (TSX: MRC) announced today the successful completion of its previously announced sale of a portfolio of 14 high-quality hotels for gross proceeds of $410.0 million. This strategic transaction signifies Morguard's progress in optimizing its real estate portfolio and sharpening its focus on core real estate investments.

"The successful conclusion of this deal is a testament to the appeal of our hotel portfolio and the strength of Morguard's management over the years," said K. Rai Sahi, Chairman and Chief Executive Officer. "We are pleased to have capitalized on the current market demand for high-quality hotels. This positions us well for future growth."

The portfolio, comprising 14 renowned hotels including Marriott, Hilton, IHG and independent hotels across Canada, specifically in the Greater Toronto Area (Toronto, Mississauga, Markham, Vaughan), Ottawa, Halifax, and Sudbury, was sold to an institutional purchaser. Further information about the properties being sold can be found in the appended section of this news release. Morguard will retain ownership of two hotels: the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa, Ontario and Inn at the Quay in New Westminster, British Columbia.

Upon closing the transaction, Morguard repaid first mortgage debt totaling $48.7 million, resulting in net proceeds of $361.3 million, before closing costs and customary adjustments. The liquidity provided by this transaction demonstrates Morguard's commitment to reduce indebtedness and pursue its core business objective of owning and managing a diversified real estate portfolio of office, industrial, retail, and multi-suite residential properties.

About Morguard Corporation

Morguard Corporation is a major North American real estate and property management company. Morguard has extensive retail, office, industrial and residential holdings owned directly and through its investment in Morguard Real Estate Investment Trust and Morguard North American Residential REIT. Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $18.3 billion. Please visit www.morguard.com or follow us on LinkedIn. 

Property	City	Province	Total Rooms
Courtyard Marriott Markham	Markham	ON	144
Residence Inn Marriott - Markham	Markham	ON	100
Courtyard Marriott Mississauga	Mississauga	ON	144
Hilton Garden Inn Toronto Airport West	Mississauga	ON	152
Cambridge Suites Mississauga	Mississauga	ON	100
Holiday Inn Express	Ottawa	ON	115
Towne Place Suites by Marriott	Sudbury	ON	105
Courtyard by Marriott Toronto Airport	Toronto	ON	168
Hotel Carlingview Toronto Airport	Toronto	ON	112
Residence Inn by Marriott Toronto Airport	Toronto	ON	137
Toronto Airport Marriott	Toronto	ON	424
Courtyard Marriott Vaughan	Vaughan	ON	144
Cambridge Suites Hotel Halifax	Halifax	NS	200
The Prince George Hotel	Halifax	NS	203
TOTAL HOTEL			2,248

SOURCE Morguard Corporation

K. Rai Sahi, Chairman and CEO; Paul Miatello, Chief Financial Officer, T 905-281-3800 or email [email protected]