Fortis sells hotel assets for $365M; follows $430M sale of commercial properties
ST. JOHN’S, N.L. - Fortis Inc. ( TSX:FTS) says it has signed a deal to sell the hotel assets of subsidiary Fortis Properties Corp. to a private investor group for $365 million as the company moves to focus on its core utilities business. The transaction, involving 22 hotels in seven Canadian provinces, is expected to close in the fall. The private investor group was not identified in a Fortis release issued after markets closed on Monday. The sale of Fortis Properties’ commercial real estate portfolio for $430 million was completed last week. “The disposition of these hotel and real estate assets is consistent with the corporation’s focus on its core utility business,” said president and CEO Barry Perry. “Post closing of the hotel transaction, virtually all of the corporation’s assets will be comprised of regulated utilities and long-term contracted energy infrastructure.” Fortis is in the North American electric and gas utility business with assets totalling some $28 billion serving more than three million customers across Canada and in the United States and the Caribbean.