Calgary based owner Royal Host Real Estate Investment Trust has owned the hotel since 1997, and reportedly made a profit of about $78 million from the deal, scheduled to close by Aug. 14.
Patrick Lambie, executive vice-president of Royal Host, said choosing to shed the property from the companyâ€™s holdings boils down to a simple matter of dollars and cents.
â€œItâ€™s just a matter of opportunityâ€¦we are in the real estate business and itâ€™s as simple as buy low and sell high,â€ he said.
As for what the investment will mean to Delta Hotels, Gordon Johnson, the regional vice-president for the chain and the general manager for Delta Vancouver, said Kelowna is a market thatâ€™s long been sought after.
So when they were approached by an â€œinstitutional investorâ€ to be the new face of the hotel, they jumped at the chance.
â€œKelowna has been on our radar for a long time,â€ he said. â€œItâ€™s key to the B.C. Interior market because itâ€™s great from a leisure perspectiveâ€¦but itâ€™s also a business hub.â€
While the outside will largely remain the same, the resort will receive more than $7 million in capital refurbishments over the next three years to upgrade the hotel and amenities.
â€œFirst and foremost we will look at guest rooms. The rooms have been well maintained, but they will need to be upgraded to something more contemporary,â€ he said.
â€œWe will do the corridors, and there is money earmarked for public areas and the main hallways. Besides the Delta name going on the hotel, we will spend most of the money on the guests, not the exteriors.â€