Lai Sun Hotels International has decided to abandon the proposed flotation of its North American hotel interests and management business in Canada and sell the operations instead.
The company, which says it wants to focus on Asian expansion, said Canadian Pacific Hotels had agreed to pay C$94 million (about HK$514.55 million) for Delta Hotels, of which Lai Sun owns 49.9 per cent.
Delta, which runs mid-market hotels in North America, is 50.01 per cent owned by RH Corp.
The company said it considered the sale of the partnership interest more attractive than a spin-off as it would allow the company to focus resources on the hotel management business in Asia.
Lai Sun will agree, on completion of the sale, not to invest in, manage or franchise various existing properties managed by Delta Hotels within three years after the disposal.
Meanwhile, Lai Sun said its 50 per cent-owned subsidiary DHL Vancouver Suites Limited Partnership has agreed to sell its 34.8 per cent stake in Conference Plaza Hotel Limited Partnership for C$5.13 million.