Holman Grand hotel changes owners

Ryan Ross
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Holman Grand

The Holman Grand hotel building in downtown Charlottetown has a new owner, but the hotel’s name and some of its assets inside didn’t go along with it.

The news came in the latest update from court-appointed monitor Deloitte and Touche, which is overseeing the hotel’s former owner Homburg Invest Inc.’s restructuring and posted the update on its website Wednesday.

That update confirmed Charlottetown-based Dyne Holdings is the building’s new owner, although what it means for Island taxpayers and a government loan used to build the hotel is still unclear.

An attempt was made to contact Innovation Minister Al Roach whose department is responsible for provincial lending.

A spokeswoman for the department said he was unavailable Wednesday afternoon, but he had a meeting scheduled with his staff for Thursday morning to discuss the file.

The change in ownership came after months of speculation over who was offering to buy the money-losing hotel.

In a motion to a Quebec court, Deloitte and Touche sought approval to conclude an agreement between Homburg Invest Inc. and Cominar Real Estate Investment Trust (REIT) to transfer ownership of the chattels, the hotel name and its website.

Cominar REIT owns Dyne Holdings.

The chattels include moveable assets inside the hotel, such as beds, linens and electronics.

Dyne Holdings owned the land on which the hotel was built and after an agreement that came into effect in November, the company took ownership of the hotel building. That deal didn’t include the chattels, name or website.

Homburg Invest Inc. has been under creditor protection for more than a year and used to have a stake in Canmarc REIT, which was purchased by Cominar REIT last year.

During the summer, Homburg Invest Inc. decided to put the hotel up for sale and it shut it down in November.

As of November, Homburg Invest Inc. owed the province about $16 million it borrowed to build the hotel and for which the government had a mortgage guarantee.

Although some previous reports from Deloitte and Touche have referred to the province’s guarantee, the latest report made no mention of it.

The change in ownership of the chattels, hotel name and website are subject to court approval.

An attempt to contact Dyne Holdings vice-president Tanya O’Brien was also unsuccessful.

rross@theguardian.pe.ca

twitter.com/ryanrross

Organizations: Homburg Invest Inc., Holman Grand hotel, Dyne Holdings Cominar Real Estate Investment Trust Canmarc REIT

Geographic location: Charlottetown, Iceland, Quebec

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Recent comments

  • thiago daluz
    April 02, 2013 - 11:30

    I spoke with an orlando florida personal injury attorney who's always in on this kind of thing and he pretty much told me not to even bother because it was such a mess. That's a sad state for anything to be in, but especially where it involves government.

  • MT POCKETS
    February 07, 2013 - 12:54

    Please please have the name Homburg removed from OUR fine Confederation Centre. hOMBURG IS FROM AWAY ANYWAY. I think of the poor trades people and small contractors that get shafted again

    • I believe
      February 07, 2013 - 18:34

      I asked that of someone and they said it's locked in for 10 years so it may be on there awhile. Legally. Hopefully they were wrong.

  • Tricky Dicky
    February 07, 2013 - 10:48

    Well.........the spin, when it comes from this, will be truly amazing. Essentially it looks like all and sundry,..........PEI contractors, the hapless Liberal government & the long suffering taxpayers of PEI are going to be hosed.

  • Sylvia
    February 07, 2013 - 10:46

    My greatest wish would be that Homburg name would be removed from Confederation Centre theatre. I don't call it Homburg theatre. Please, someone, get rid of that name.

  • Fed Up
    February 07, 2013 - 10:11

    Enough! Is there not a type of legislation, a law, to stop this out of control government. It needs to be taken down, hold them accountable, and put a government in place that is for the people, not the rich and corrupt. Bad news is that when this society is permitted to continue like this, it will get worse. All the infrastructure will deteriote, less and less for the people, but more taxes, where even those who have jobs will not be able to make a living. Greed only breeds more greed. If it does not stop, there is no saving Islanders or the Island. Our debt could never be paid off now, and everyone seems to be travelling to find a nice retirement place to spend their loot out of the eyes of those they stole from. Sick and sad group of leaders, those who hold office and abuse their power.

  • Gerry
    February 07, 2013 - 09:38

    So. simply put, the province wrote off Homburg's debt (at taxpayers' expense) under one name and sold, no, "gave" it back to him under another name, which is actually "Homburg?" Will the real Homburg please stand up? This reminds of the song "I'm My Own Grandpa!"

  • samuel
    February 07, 2013 - 09:08

    Good one John, ----- no, we have to wait for Ghiz to get over the jet-lag from his trip around the world ,------------he will come to the screen and explain it all, and it wll be an explanation we can understand, he is SO elequent, ---- and better still, he will probably tell us we have made money on the deal --- just like we are making money on all the loans he is dishing out, ( e.g. the liberal one re-organizing his million dollar farm and buying a car dealership)---- God Bless us for having chosen such a bright light to lead us.

  • john graze
    February 07, 2013 - 09:03

    Now cool your heels everybody, ---- I am sure Roachi will be on the screen tonight explaining the whole deal, - I am sure he is on top of it all, after all he is The Minister, so he has grasped it all------ I WISH------------

  • Tom Paine
    February 07, 2013 - 09:03

    from day one, all this bankruptcy garbage was financial engineering by Homburg and nothing more than a way to get out of its financial obligations. As a member of the creditors committee, the PEI government should have nothing to do with Homburg. I'm sure there will be other interested parties.

  • walter
    February 07, 2013 - 08:59

    absolutely beautiful, --- imagine being able to create these ideas,-company after company, until everybody gets dizzy - and with taxpayers money, ----. I certainly think we should keep his name on the Theatre, how often do we get to honor such a genious, - and his local helper should get the Queens medal for having helped screwing his fellow taxpayers and Islanders. We can again thank our useless government, - Ghiz and his friends on the 5th floor, nor the fools in Innovation, are not equiped to play with these guys, - . We need legislation to curbe the actions of these useless people, we the taxpayers need protection.

  • Bill Kays
    Bill Kays
    February 07, 2013 - 08:24

    Of course it's a shell game, and any other game ity can play as long as they get to write the rules and they also get to cheat. Nice scam if you can get in. Everything this government does it does in secret. There is not even an illusion of transparency and accountability.Look at Ghiz off on another trade mission. It is laughable. Islanders should shut this province down and take back what is rightfully ours. Throw the selfish self serving bunch of hippocrates and crooks

  • Bob from Cardigan
    February 07, 2013 - 08:12

    OLD OWNER Richard Homburg and Homburg LP Management Incorporated are the owners of Dyne Holdings. So yes, there was no exchange of anything but the loss of millions of dollars for ordinary Islanders and the government remains quiet and embarrassed.

  • Anne Abbey
    February 07, 2013 - 08:08

    Why is there no mention of the millions of dollars still owed to the contractors who completed the work on this white elephant????

  • OLD OWNERS??
    February 07, 2013 - 08:01

    Are you sure the hotel changed owners or just company names? You play with the big boys you get burned. Our local politicians might be okay at getting around the people of this province but they are playing in the big leagues here. Out 16 million is an average deal for this Government. The Government HAD a mortgage Guarantee with Homburg but what about now????

  • Despierto
    February 07, 2013 - 07:42

    Wow, it is getting so deep I will have to change from rubber boots to chest waders.

  • me
    February 07, 2013 - 06:45

    Lending 16 million to someone to build a hotel on this little island had to be ONE of the stupidest things government has done ? And by the way when are they going to change the name of the Confed Theatre from Homburg to something a little more suitable?

    • I Agree With ME
      February 07, 2013 - 08:36

      The name change of the Confed. Theatre was appalling, to say the least!!

    • Mary Mac
      February 07, 2013 - 08:43

      Yes,When is the name homburg theater going to renamed for what is was from the beginning 1967 when the Conederation Center was built. Also the Sherwood Sportsplex. Why was it renamed. ? Sherwood was a clean and nice community and many wonderful people lived there, Not just 1. But Most certainly,Confederation Cener theater.One of the fathers of Confederation would certainly be more appropreate, then the humburg,

  • shell game
    February 07, 2013 - 06:19

    While I can appreciate the need to keep things undisclosed during negotiations, there's no reason to hide the plan to provide access to information. If Roach can't tell Islanders how our money is being used, at least he should be able to tell us when we'll know how it was used. The transparency this government boasts of is close to non-existent.

  • tiresome
    February 07, 2013 - 06:18

    Here we the taxpayer are owed a fortune and Ms O'Brien has no comment on our money. Shameful the lack of transparency. They had lot's to say when the hand was out for the millions.

  • don
    February 07, 2013 - 05:39

    i wonder how many MILLIONS are islanders stuck to pay for this screw up by dizzy?

  • gMack
    February 07, 2013 - 04:59

    Dyne Holdings = Homburg LP Management Incorporated

  • nick
    February 06, 2013 - 22:23

    WOW----WOW---WOW, --- not a soul in the Prov. Gov. would have a brain to deal with these fellow, --- they would have made Ghiz's head spin when they met with him gunning for all that money, - there should be a law that Gov. cannot use our money for anything but provide services, -- the brainless Ghiz gang have sold us out, - and now are forcing us to pay HST to pay for it all, -- trade mission to Egypt, Turkey and England, --- how much is he trying to give away now, --- hopefully it was just a diversion trip to humor himself, --- it is bad enough we have to pay for his and others tickets. --- Guardian, who else went, lets see the whole picture? - no, I suppose we need to look at the "real newspaper" to learn anything important about the Ghiz government . The matter at hand, what did Humbug buy his hotel back for? What a scam ---

  • I Don't Understand
    February 06, 2013 - 21:23

    I googled "Who are the Directors of Dyne Holdings" and out came the following: "Primary Business: Dyne Holdings Limited Box 1810 650 Confederation Court Complex 119 Kent St Charlottetown PE C1A 1N3 Canada Current Positions: Dyne Holdings Limited, pres. Homburg Invest Inc., vice-chr. & dir." Did we just sell this back to iomburg?