Maroc - STOREYS.COM - A La Une - 15/Apr 16:14

Boutique Versante Hotel In Richmond Put Up For Sale Over $80M Debt

The Versante Hotel, which describes itself as Richmond's "only luxury boutique hotel," has been made available for purchase via a court-ordered sales process, according to filings in the Supreme Court of British Columbia obtained by STOREYS. The Versante Hotel sits at 8499 Bridgeport Road near the intersection with No. 3 Road and the site is just east of the Fraser River, on the other side of which sits Vancouver International Airport (YVR). The 14-storey hotel opened in 2021 and consists of 100 rooms, with amenities including a fitness centre, rooftop pool, and airport shuttle service, among others. In 2021, Forbes called the Versante Hotel "Vancouver's New 'It' Hotel." Last year, the Versante was a finalist for two BC Hotel Association awards — Housekeeping and Hotel of the Year — but ultimately did not win either. The Versante Hotel is part of a three-building complex known as the International Trade Centre, which includes two office towers on either side of the hotel. The hotel is managed by Trilogy Hotel Management (Richmond) Ltd., which is associated with Trilogy Pacific Investments. Debt and DispositionThe court-ordered sales process was initiated in late-January by Fox Island Development Ltd. and Advanced Venture Holdings Co. Ltd. against Kensington Union Bay Properties Nominee Ltd., Kensington Union Bay Properties Limited Partnership, and Kensington Union Bay Properties GP Ltd. Also listed as respondents were Hotel Versante Ltd., International Trade Center Properties Ltd., Sunwins Enterprise Ltd., Mo Yeung Properties Ltd., and Mo Yeung Ching — also known as Michael Ching.Other parties that hold subsequent-ranking charges were also listed as respondents.According to Fox Island Developments and Advanced Venture Holdings, they reached a loan agreement with the borrowers in June 2021 for the principal amount of $35,849,266.69. The agreement was amended twice in 2022 and then a third time in February 2023, when a forbearance agreement was also reached between the two sides, which was itself extended twice before borrowers defaulted, allowing the lenders to quickly begin foreclosure proceedings. On February 29, 2024, the Supreme Court granted an order nisi that confirmed the total amount owed by the debtors at $79,658,326.01, with interest accumulating at high rates. The redemption date — the date by which the debtors can pay the outstanding amount to halt the foreclosure proceedings — was also set at August 29, 2024.The order also stated that the Versante Hotel property "be offered for sale immediately by private sale." A sales brochure was sent out to industry professionals last week, a copy of which was obtained by STOREYS. 8499 Bridgeport RoadThe Versante Hotel is being listed by Bob Levine, Michael Emmott, Brendan Hannah, and Jonathan Hallett of Avison Young with an asking price of $98M.The $98M asking price equates to nearly $1M per hotel room and is over four times higher than BC Assessment's $23,297,000 valuation of the property. It's unclear why there is such a big price gap, but hotel properties in Metro Vancouver are increasing in appeal due to the region's well-documented shortage of hotel rooms and the provincial crackdown on short-term rentals. Excerpts from the Versante Hotel sales brochure.(Avison Young) Excerpts from the Versante Hotel sales brochure.(Avison Young)For the time being, the Versante Hotel remains open and fully operational. "We want to reassure our esteemed guests and clients that these occurrences do not affect or interrupt the hotel's very successful operations," a spokesperson said in a statement provided to STOREYS. "Versante Hotel remains fully operational and remains steadfast in delivering exceptional service. Our unwavering dedication to providing outstanding hospitality to both our hotel and restaurant patrons remains our foremost focus." The statement also said, "it is crucial to acknowledge that there is an ongoing shareholder dispute," but the spokesperson declined to elaborate on the dispute, which was also not detailed in court documents. The sale of the Versante Hotel will require approval from the Supreme Court.