The receiver of a recently mothballed resort hotel in the Interlake region is confident it will be sold and reopened even after two recent breaks in the sprinkler system caused $500,000 in damages.
More than a dozen of the Radisson Hecla Resort's 90 hotel rooms sustained water damage, but it's all covered by insurance and will be completely repaired shortly, according to Joel Lazer, senior partner of Lazer Grant LLP, which was appointed receiver of the hotel last November.
Lazer brushed off the extent of the damages, saying more than $25 million was spent upgrading the hotel in 2006.
"It's been winter in Manitoba and it's been cold," Lazer said.
Lazer Grant has hired CB Richard Ellis Hotels Group, an international firm that specializes in divesting hotel properties, and given it a mandate to find a buyer and sell the Radisson Hecla. There is no list price but, considering the upgrading expenses, it is safe to say that the sale price will have eight figures.
Its asset value, including the hotel, a spa and an 18-hole golf course, has been pegged at more than $30 million.
- Compiled by Geoff Kirbyson
from Western Investor, May 2011
