MONTREAL – Hotel chain Groupe Germain plans to add eight ALT hotels in Canada after receiving more than $80 million of share capital from the Caisse de depot pension fund and other investors.
The family run Quebec-based company operates five Le Germain boutique hotels in Quebec City, Montreal, Calgary and Toronto, along with two ALT Hotels in Montreal’s South Shore and the provincial capital.
Construction is already underway to add four ALT Hotels at Toronto’s Pearson Airport, Halifax’s Stanfield Airport, Montreal’s Griffintown District and in Winnipeg.
The funding will allow the company to add accommodation in four other undisclosed locations, says co-president Christiane Germain.
“The other sites are not secured yet but there are possibilities in Edmonton, Calgary and Vancouver,” she said in an interview.
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“We were kind of waiting for this to be finalized to complete some of the transactions we have been discussing.”
Germain declined to specify how much of the investment is coming individually from private investors and institutional groups such as Investissement Quebec, La Capitale Financial Group and Industrial Alliance, Insurance and Financial Services.
The Caisse de depot, which manages billions of dollars in assets for Quebec’s public sector pension plans, said its investment totals $10 million.
The ALT Hotels offer modern, three-star accommodation, which it labels as “No Frills Chic,” with rooms starting at around $135 per night.
As long-standing investors of the Germain Group, the Caisse said the ALT Hotels are a new opportunity to invest in a well-performing Quebec company.
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“With this investment, the Caisse will support a Quebec company’s growth while optimizing returns for its depositors,” stated Normand Provost, executive vice-president of private equity and chief operations officer.
Germain Group opened its first hotel in Quebec City’s Old Port area in 1997, followed by one two years later in Montreal. Hotels were added in the Eastern Townships in 2002, Toronto’s Entertainment District in 2003 and at Maple Leaf Square.
A hotel and spa complex in Calgary was its first foray in Western Canada.
The ALT brand was launched in 2007.
“We have plans trying to do 10 in the next five or six years, so if we do achieve that we’ll be very happy,” added Christiane Germain, noting the chain will concentrate on Canada for now.
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