Sandman parent company nets two Sutton Places
Tom Gaglardi, Northland Properties Corp.
VANCOUVER—Tom Gaglardi, president of Northland Properties Corp., started out with a plan to acquire the Sutton Place Hotel Edmonton for $34 million to fill a hole in its Sandman Signature and Sandman Hotel portfolio.
“The hotel was not available on its own—it was a package transaction,” Gaglardi told CLN in an interview last month. The package included the Vancouver Sutton Place Hotel and Sutton Place Hotel Group brand, as well.
That put the price up to $198 million.
“Initially, we were not sure [the Sutton Place Vancouver] was a fit—it was in a luxury tier we didn’t have. But it has a really special location, it’s a hotel that’s second to none, and it’s in the city we’re from. As time went on, we became more and more comfortable with the concept of owning it.
“And if we were going to buy the two hotels, we really needed to purchase the brand, giving us a new platform for expansion,” Gaglardi said.
Northland Properties bought Sutton Place in Vancouver for $164 million
Headquartered in Vancouver, the Sutton Place Hotel Group becomes the luxury tier of Northland’s hospitality portfolio. Currently, Northland is the parent company of the Sandman Hotel Group, which includes Sandman Hotels, Inns, & Suites, and Sandman Signature Hotels & Resorts; Moxie’s Classic Grill, Dencan Restaurants, Rockford Wok|Bar|Grill, Shark’s Club Canada, Chop Steakhouse & Bar, and Revelstoke Mountain Resort.
The Sutton Place Hotels in Toronto and Chicago are owned by an offshore company. They are for sale but were not part of the Northland purchase.
“We will look to add locations in primary marketplaces across Canada, and possibly internationally in the coming years,” Gaglardi said. While the company has no firm plans at present, Gaglardi noted that the Northland owns some land in downtown Calgary where it plans to build a high rise hotel, which could well be a Sutton Place.
Northland Properties bought Sutton Place in Edmonton for $34 million.
In the meantime, Northland plans to renovate the Edmonton hotel. “We’re geared up to renovate pretty quickly,” Gaglardi said. “We’re planning extensive renovations to the hotel and food and beverage.”
John Sandor, who was general manager of the Sutton Place Vancouver, will now be responsible for both hotels.
“I’m in seventh heaven,” he told CLN. The nicest part of the deal is that there is local ownership. If you know the owners themselves, then you know how deep they go, and how well they look after their business.
“They’ve bought a brand and are going to grow the brand. We’re all excited about that here.”
In the near future, the restaurant at the Edmonton property will become a Chop Steakhouse and bar, and the Vancouver property will likely see some upgrades on the residences side.
Northland Properties Corporation will ensure a seamless transition of ownership while maintaining the standards associated with the Sutton Place Hotel Group.
Sutton Place Hotel Group
“The acquisition will be virtually invisible to a Sutton Place guest, and key leadership will stay in place,” Gaglardi said.
Northland Properties Corporation is privately held and remains 100 per cent Canadian owned since its founding in 1963. It develops and operates hotels, restaurants, residential apartments, as well as commercial, office, and retail spaces. The company is headquartered in Vancouver with an additional office in Calgary.
Sandman Hotel Group recently acquired the 95-room Holiday Inn Express Hotel in Squamish, BC. The property is now operated as the Sandman Hotel & Suites Squamish.
Opened in 2010, the property is the newest, most modern hotel in the area. Spread over three floors, it features 95 rooms, including 37 fully furnished suites.
With the opening of the Sandman Hotel & Suites Squamish, the brand has now opened five properties in the past 15 months. Sandman Hotel Group has recently opened additional locations in Prince George and Abbotsford, BC, as well as Edmonton and Calgary, Alberta, bringing the total number of properties in the collection to 41, with a total room inventory of 6,357 rooms.
Holiday Inn Express in Squamish, BC is now a Sandman