Artifact Group is expanding its hospitality portfolio in Quebec with the acquisition of the 595-key DoubleTree by Hilton Downtown Montreal hotel, one of the major components of the Complexe Desjardins in the city’s entertainment district.
The recently refurbished property also includes 45,600 square feet of event space and a suite of amenities including food and beverage outlets, an indoor pool, spa, fitness centre and more.
The property had been owned and operated by Swedish-based Pandox since 2008 and was divested by the company for $80 million. The figure takes into account an additional $15 million which is to be invested into the structure and facade of the building by the new owner, Pandox said in its own announcement on the sale. That brings the total gross consideration to $95 million.
“The DoubleTree by Hilton Montreal is a strategic acquisition for Artifact Group,” said Gaurav Gupta, president of Artifact Group, in its announcement Friday morning. “This hotel will bring our portfolio to 1,600 rooms in the province of Quebec and will further allow us to provide the highest level of service and experience to our guests across all segments.
“The property is located in an area I like to call the heart of the city; a hub for activities and festivals. We are dedicated to preserving the hotel’s sense of place while enhancing its offerings to add value to this investment.”
The DoubleTree by Hilton Downtown Montreal
Artifact said the acquisition is part of a joint venture, but declined to identify its partners.
The DoubleTree by Hilton Downtown Montreal sits at a prime location directly across from Place-des-Arts.
It offers direct access to the Montreal underground city, which its new owners say allow it to be “seamlessly integrated into the city’s year-round events for Grand Prix, Jazz Festival and many more, ensuring unparalleled convenience for guests.”
An Artifact spokesperson told RENX it is too early to release details of the planned renovations, nor did they immediately provide a timeline for any planned improvements.
The acquisition is Artifact Group’s second partnership with the Hilton brand, following the acquisition and rebranding of the Vogue Hotel Montreal Downtown, Curio Collection by Hilton, in 2020.
In Quebec, Artifact also owns the Hyatt Place Montreal Downtown, Hotel MOCO Valleyfield and the Delta Hotels Quebec by Marriott.
The company was founded in 2019 and was originally known as Sageblan Investments, but rebranded itself in the spring of 2023. It also holds investments in the U.S.
The divestment means Pandox has exited the Montreal hospitality sector, having also sold the InterContinental Montreal last year to Groupe Mach, another Montreal-based commercial real estate developer, owner and operator.
The sale price for that property was also $80 million and Mach announced a plan to spend up to $25 million over two years to refurbish the Old Montreal hotel. It contains 357 rooms.
“With the divestment of DoubleTree by Hilton Montreal, we realize values and free up capital for investments with higher return potential in our home markets where we can execute hotel property development more efficiently,” Pandox CEO Liia Nõu said in the company’s own announcement.
“We have owned the hotel property since 2008 and have in stages, together with a strong team in Montreal, successfully developed the hotel product.
“We are happy to have reached an agreement with a strong local hotel property owner who can take the hotel property, with its challenges and opportunities, to the next level.”