Germain Hotels has completed a new $160-million investment round led by CDPQ, with participation from the Fonds de solidarité FTQ and Investissement Québec, as well as the merger of Groupe Germain Inc. and Alt Canada Investment Corporation SEC into a single entity.

The funding will enable the company to accelerate its development plans across Canada and consolidate its existing network of properties. Germain operates its hotels under the Germain, Alt and Escad banners.   

"We're very pleased to count on the renewed commitment of high-quality partners," Jean-Yves Germain, co-founder and co-president of Germain Hotels, said in the release. "This additional investment marks an important milestone in the growth of our family business. It gives us the means to achieve our ambitions while remaining true to our core values."

The reorganized company will now operate as Germain hotels, the Montreal-based firm said in Thursday morning’s announcement.

"Merging into a single entity will strengthen Germain Hotels' agility and give it the financial and organizational resources to seize new opportunities in the Canadian hotel market. We are enthusiastic about the opportunities that lie ahead and about promoting Québec's expertise," said Christiane Germain, co-founder and co-president of Germain Hotels, in the announcement.

A change in Germain's investment partners

The investment also involves a shuffle of Germain’s business partners. The company revealed in the announcement some of its previous investors have “chosen to step back at this stage”, though it has not revealed any details.

CDPQ, however, has had a longstanding investment relationship with Germain.

"For nearly 15 years, CDPQ has played a major role in supporting Germain Hotels at three key moments in its expansion across Canada," Kim Thomassin, executive vice-president and head of Québec at CDPQ, said in the announcement. "By leading this new round of financing, we continue to stimulate the growth of a Québec company with a distinctive business model. 

“Our aim is to sustain Germain Hotels' success over the long term and reinforce its leadership in the Canadian hotel market."

Germain Hotels operates 19 properties across Canada and is continuing to expand its presence. It is to open Alt Hotel Ottawa Airport this fall, followed by Le Germain Hotel Casino de Montréal, and finally, Le Germain Hotel Vancouver over the next few years.

The Vancouver project involves converting a former office building into the hotel, in partnership with building owner Reliance Properties. 1111 West Hastings St., will become a 180-room boutique Le Germain, and is slated to open in 2029.

It will be the first Vancouver hotel for the 35-year-old firm, whose strategy is to offer “distinctive and authentic hotel experiences.”

Fonds FTQ, Investissement Québec previous investors

Both fonds FTQ and Investissement Québec are also very familiar with Germain and its operations.

"Since its inception, Germain Hotels has distinguished itself by its ability to innovate in a changing sector. As a long-time investor, we are proud to once again support this flagship of Québec's hotel industry as it continues to grow," Dany Pelletier, executive vice-president, private equity and impact investing at Fonds de solidarité FTQ, said in the release.

"Investissement Québec is proud to once again join forces with Germain Hotels. By increasing its stake in this Québec flagship company, the government corporation reaffirms its commitment to supporting local businesses at every stage of their growth and fully embraces its role: fostering the growth of Québec companies and propelling them to global leadership in their respective industries," added Bicha Ngo, president and CEO of Investissement Québec.

About the investors

CDPQ is a global investment group managing funds for public pension and insurance plans. The Québec-based investor is active in the major financial markets, private equity, infrastructure, real estate and private debt.  As of Dec. 31, 2024, CDPQ's net assets totalled $473 billion.

The Fonds de solidarité FTQ manages the retirement savings of 795,374 shareholders-savers in Québec. With net assets of $21.7 billion as of Nov. 30, 2024, the Fonds invests in close to 4,000 companies, both directly and indirectly through venture and development capital investments.

Investissement Québec's role is to play an active role in the province’s economic development by stimulating business innovation, entrepreneurship and business acquisitions, and growth in investment and exports. It also assists businesses by providing consulting services and other support measures, including technological assistance. 

In addition, through Investissement Québec International, the corporation prospects for talent and foreign investment and assists Québec businesses with export activities.