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 Hospitality Investors Group Acquires the 800 room
Regal Constellation Hotel at Toronto Airport;
Planning Repositioning and Renovation
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Scottsdale Arizona (February 2, 2004) - Hospitality Investors Group (HIG), a private equity group focusing on investment and development of hospitality lodging, announced its acquisition, planned repositioning and renovation of the 800 plus room Regal Constellation Hotel at Toronto Airport. Alongside HIG, the acquiring consortium includes a group of private investors including Steve Stavros, a prominent Canadian entrepreneur.  Financing for the acquisition was provided by Aareal Bank, AG, Germany, and arranged by Hermes Partners, France.
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Regal Constellation Hotel
900 Dixon Road
Toronto, Ontario
One of Canada’s finest First Class destination convention hotels with superior facilities for meetings, weddings and social functions, The Regal Constellation Hotel currently contains 90,000 square foot of convention space – the largest of any hotel in Canada.  Plans call for an extensive renovation of the property, including creation of a four-star 350-room full service hotel in addition to a refurbished three-star hotel comprising the balance of the property.  The public area renovation will include a branded multiple restaurant complex and an international health and fitness club chain.

Orenstein, a 35 year veteran of the hotel and resort industry having acquired, developed and sold over 70 hotels worldwide, established HIG in 1998.  “With investments in the US, Canada, and South America, HIG is in the process of building a significant, global portfolio of hotel properties. We have unrestrained geographic possibilities, and can create value in the buying process and through extensive repositioning.  The Regal Constellation Hotel acquisition fits this strategy.” Mr. Orenstein said.

Renovations on The Regal Constellation Hotel will begin in three months and be completed in stages over the next 18 months.  The timing coincides with the C$10 billion renovation and expansion of Toronto’s Pearson Internal Airport.

“It’s exciting and timely to rejuvenate this landmark hotel, especially since the recent growth and expansion of the airport has been so impressive, “said Orenstein. “The newly renovated hotel will become a major mixed use destination that will better serve the complete North West area of Toronto as it has for so many years.”

Well-known throughout the hotel and resort industry, Orenstein was Vice President of development for Four Seasons Hotels Limited, where he participated in developing their original concept and first properties in the United States, Canada and Europe. He then served as a member of the executive committee, contributing significantly to the company’s growth.

Ten years after joining, Orenstein left Four Seasons to become a hotel developer, enjoying considerable success throughout North America and Europe.  His successful Canadian transactions include the development and sale of Toronto’s prestigious five-star King Edward Hotel; development of six Canadian commercial hotels in partnership with Novotel Division of Accor, S.A.; the acquisition of over 5,000 hotel rooms for a predecessor company of Quality Inns; and the development of Toronto’s Intercontinental Hotel. In addition, Orenstein was a principal and vice chairman of Park Plaza Worldwide, an international franchise and management company with over 200 hotels worldwide, where he sold his interest to found HIG. 

Tom Huffsmith, President of Hospitality Investors Group, has a 20 year plus career in the hospitality world. Tom was previously President of Regent International Hotels and Resorts and prior to that Senior Vice President of InterContinental Hotel Group and LaSalle Partners. Tom will assume the responsibility of directing the repositioning and multi-million dollar renovation program at the Toronto Regal Constellation. 

HIG has offices in Scottsdale, Arizona and Paris, France.

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Contact:
Frank Orenstein
(602) 315-8636
feo@hospitalityinvestors.com

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Also See: Royal Equator Reflags the 524 room Best Western Carlton Place Toronto Airport to Park Plaza Toronto Airport / September 2003
Canada's Hotel Industry Has Seen More Prosperous Times / Colliers INNvestment Canada - Third Quarter / November 2003


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