Besides the opportunity to buy into the 14th largest city inNorth America, the Pandox purchase reflects a rising tide offoreign investment in Canada, according to Jones Lang LaSalleHotels EVP Alan Tantleff, whose firm negotiated the deal. "With therecent run-up in prices of real estate in Europe and the US, Canadais perceived as a value market," says Tantleff, further relayingthat "this trend is expected to accelerate."

JLL's hospitality brokerage team advised the sellers, apartnership of InterContinental and minority owner Cadim, whoseparent firm is la Caisse de depot et placement du Quebec. The buyeralready owns more than 40 hotels and 10,000 rooms in Europe and theBahamas, but the InterContinental Montreal is the first NorthAmerican investment for Pandox. In a release, CEO Anders Nissencalls the InterContinental Montreal "a great property withtremendous potential," and indicates Pandox is launching arenovation campaign at the property that could exceed $10million.

According to Tantleff, the InterContinental Hotel is alreadyconsidered among the city's premier inns, one that draws from threelucrative sources of occupancy. Group and event activity benefitsfrom a direct underground connection to Montreal's main conventioncenter, he notes, and the location also is embraced by the businessand leisure crowd. Tourism has become a significant piece of thecity's economic base, says Tantleff, and the InterContinentalMontreal is located near such popular destinations as the Old Portand the Place des Arts.