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Evergrande's Canadian Log Cabin Hotel Faces Sale
20 Nov
Summary
- Iconic Fairmont Chateau Montebello hotel is in receivership.
- Developer China Evergrande failed to make debt payments.
- The 95-year-old log cabin hotel will be put up for sale.
Fairmont Le Chateau Montebello, an iconic log cabin hotel in Canada, has been placed in receivership due to China Evergrande Group's defaulted debt. The hotel's insolvent subsidiary owes C$58 million to creditors, prompting a motion for its sale. This situation highlights the ongoing financial distress within China's real estate sector, impacting even international assets.
The 95-year-old Fairmont Le Chateau Montebello, which boasts over 211 rooms and suites and is managed by Accor SA's Fairmont Hotels and Resorts, will remain operational during the sale process. The property, situated west of Montreal, includes extensive amenities like an 18-hole golf course and a spa.
PricewaterhouseCoopers LLP has been appointed as the receiver by Quebec's Superior Court, with a partner tasked to oversee the proceedings. The receiver confirmed that the ultimate action plan involves putting the historic hotel up for sale, communicating with stakeholders including the hotel management and the defaulting company.
