Newfoundland-based Fortis Properties Corp. is acquiring a landmark hotel in the capital city.
Fortis confirmed Tuesday it is buying the Fairmont Newfoundland. The company declined to release financial terms.
“We just really believe that hotel is a great asset, and to be honest, we think it has tremendous potential,” said Nora Duke, president and chief executive officer of Fortis Properties.
“The fact that it’s in St. John’s, our home market — we have confidence in this market, we feel really good about it.”
The deal is scheduled to close Nov. 13. Fairmont will continue to operate the hotel for another 60 days after that.
Fortis is remaining mum on what happens then.
“We’re working through those details now, but I’m not at a point I can comment on that,” Duke said.
Duke said no layoffs are planned in the short term. “For the immediate future, it’s business as normal.” But she indicated that Fortis will look at the operation over time.
The company already owns two other major hotels in St. John’s — the Holiday Inn, with 252 rooms, and the Delta, with 403. The Fairmont has roughly 300 rooms.
After the deal closes, Fortis will hold in its portfolio roughly half of the hotel rooms in the capital city.
Fortis Properties also owns hotels in Corner Brook and Grand Falls-Windsor, and a large portfolio of commercial properties in downtown St. John’s — including Fortis Tower, Cabot Place, Fort William Building, TD Place and the Fortis Building.
Last week, Fortis Properties officials declined to comment when asked by The Telegram whether they were close to a deal.
At the time, Toronto-based Fairmont spokesman Mike Taylor dismissed questions about the pending sale as “rumours.”
On Tuesday, the rumours became reality.
The original Newfoundland Hotel opened in downtown St. John’s in 1926.
A new hotel was built at the site of the original building in 1982.
In 1999, owner Canadian Pacific Hotels completed a deal with Fairmont to combine operations.
The venerable St. John’s hotel officially changed its name to the Fairmont Newfoundland in 2000.
Duke said it’s too early to say what Fortis will call the newly acquired property.
“Again, we’re not ready to release details of that just yet,” she said.
But she said Fortis would keep in mind the “landmark nature” of the hotel.
Fortis Properties owns 20 hotels across the country.