Group Germain Hotels today announced a transaction valued at more than $80 million in share capital, to be added to the Alt Canada Investment Fund L.P. This transaction is the second of this value in three years.
The private and institutional partners who participated in the financing announced in 2011 are back at the table, including La Caisse de dépôt et placement du Québec as lead investor, Investissement Québec, La Capitale Financial Group and Industrial Alliance. New partners include the Fonds de solidarité FTQ and DNA Capital, which acted as a financial broker for the Alt Canada Investment Fund L.P. by bringing together private investors from Quebec and Europe. The new investment will allow Group Germain Hotels to develop the Alt Hotels brand in Canadian markets where it does not currently have a presence.
“The stature of the group of investors that we have brought together is a point of pride for us,” said Jean-Yves Germain, co-president, Group Germain Hotels. “Our partners from 2011 continue to believe in us, while several renowned new partners, including some from overseas, have joined the group. This demonstrates not only that we meet their criteria for profitability, but that the hotel industry represents fertile ground for growth.”
“Through this $15-million reinvestment, this key player in the hospitality industry will be able to continue expanding into Canada’s hotel market,” said Christian Dubé, executive vice-president, Québec, of La Caisse de dépôt et placement du Québec. “This financial support reflects our commitment to help successful companies grow outside Québec.”
“Investissement Québec is proud to partner again with Group Germain Hotels, a flagship player in Québec’s hospitality industry. Our new participation will reinforce our initial commitment and enable Group Germain Hotels to continue growing outside Québec. With this investment, the Corporation will fully assume its complementary role, working with institutional and private investors”, according to Yves Lafrance, interim President and Chief Executive Officer of Investissement Québec.
“With a promising formula based on beautiful hotels and an avant-garde concept, the growth of Alt Hotels will have important economic benefits for Québec suppliers of the banner. By investing in this family-run company, the Fonds de solidarité FTQ is not only encouraging the consolidation of ALlt Hotel jobs, but also of Québec SMEs in the hotel service sector”, declared Janie Béïque, Senior Vice-President, Industries, Entertainment and Consumer Goods of the Fonds de solidarité FTQ.
The Alt concept was officially launched in 2007 with the opening of the brand’s first hotel in the Quartier DIX30, followed by a second property in Quebec City in 2008. The brand then experienced a swift expansion across Canada, with the opening of properties at Toronto’s Pearson International Airport (2012), Halifax’s Stanfield International Airport (2013) and in Montreal (2014). Three new Alt Hotels will welcome guests in the coming years, including in Winnipeg (2015), Ottawa (2016) and Calgary (2017).