Groupe Germain announces $80 million investment to expand ALT Hotels in Canada

Groupe Germain today announced a transaction of more than $80 million in share capital in the Fonds d'investissement ALT Canada s.e.c. This major transaction, which includes private investors as well as institutional investors such as the Caisse de dépôt et placement du Québec, Investissement Québec, La Capitale Financial Group and Industrial Alliance, Insurance and Financial Services, will enable Groupe Germain to continue its expansion in Canada with the addition of eight hotels under the ALT banner.

"This injection of more than $80 million in share capital will enable us to continue expanding in Canada," said Christiane and Jean-Yves Germain. "We would like to acknowledge the vision of our financial partners who, through their investments, enable us to realize our vision and extend the ALT banner across the country. We are fortunate to be able to rely on private partners who have put their trust in us at the outset and came on board in the initial fundraising stage. Coupled with this is the support of such investors as the Caisse de dépôt et placement du Québec, Investissement Québec, La Capitale Financial Group and Industrial Alliance," they added.

"ALT Hotels are part of a sweeping trend in accommodation, especially in Europe and Asia, and our research has clearly shown that this type of accommodation, which offers a design-atmosphere-décor equation at the best possible price, is lacking in Canada's hotel industry. Our investors have confidence in us to develop this hotel concept in Canada," explained Christiane and Jean-Yves Germain.

We have been Groupe Germain's partners since the outset and firmly believe that ALT Hotels respond to an emerging need in the Canadian hospitality market. Our faith in this project helped get the hotels up and running, and we're proud to see this unique accommodation concept expand across the country," said Pierre Thabet, representative for the initial investors' group.

The Caisse, one of the Germain family's long-standing partners, played a key role in this transaction. "For the Caisse, investing in ALT Hotels is a new opportunity to invest in a Québec company that is performing well. By focusing on innovation, Groupe Germain generated great success from its hotel offering. It has demonstrated a vision of leadership over the decades that has earned it an excellent position in its markets. With this investment, the Caisse will support a Québec company's growth while optimizing returns for its depositors," said Normand Provost, Executive Vice-President Private Equity and Chief Operations Officer at the Caisse.

For Jacques Daoust, president and CEO of Investissement Québec, "participation in Groupe Germain's expansion project demonstrates Investissement Québec's capacity to provide flexible financing that is adapted to companies' needs, while contributing to generating economic benefits. The project developed by Groupe Germain will create numerous direct and indirect jobs, and will contribute to creating a new Quebec leader in a promising niche of the hospitality and tourism industry."

"La Capitale Financial Group is delighted to be associated with this $80M venture involving Groupe Germain. The stability and reputation of Groupe Germain are well suited to our investment objectives, which target quality investments in a variety of industries for the benefit of our Mutual members. The business plan, competitive nature and distinctive characteristics of the service offering developed by Groupe Germain's team of presidents make it a safe investment that is in line with La Capitale's long-term investment strategy, which embodies caution and thoroughness," observed René Rouleau, Chairman of the Board and Chief Executive Officer of La Capitale Financial Group.

"Industrial Alliance supports the Canada-wide expansion of the ALT banner, because Groupe Germain is a high-profile player in the hotel industry, with solid experience and high credibility in this sector. Moreover, the company has already proven itself.  It has an enviable track record of success and has all the assets it needs to ensure the success of this major project," said Michel Tremblay, executive vice-president, investments, at Industrial Alliance.
 

on December 9, 2011