Hong Kong’s Bluesky Buys Canadian Hotel Investment Trust

Bluesky Hotels & Resorts Inc. will buy InnVest Real Estate Investment Trust, which has a portfolio of 109 Canadian hotels, for $1.6 billion.

The deal gives Bluesky, a company backed by capital from Hong Kong, ownership of properties managed by Marriott International, Fairmont Hotels & Resorts, Hilton Canada, and Hyatt Hotels Corporation. InnVest also hold a 50% stake in Choice Hotels Canada Inc., one of the country’s biggest franchisers.

“This transaction is an investment that will establish a global platform from which Bluesky will continue to pursue growth opportunities in North America,” Bluesky Chief Executive Officer Li Chen said in the statement.

The move comes as an increasing number of Chinese-based companies look to invest in North America’s hospitality and lodging industry. Most recently, China’s HNA Group Co. acquired Carlson Hotels Inc., parent company of Radisson and Country Inns & Suites brands, in April, and Anbang Insurance Group bought Strategic Hotels & Resorts. Anbang was poised to buy Starwood Hotels & Resorts for $14 billion, but walked away from the deal.