Holman Grand hotel changes owners

Ryan Ross rross@theguardian.pe.ca
Published on February 6, 2013
Holman Grand hotel, Charlottetown
Guardian photo

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

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