Charlottetown developer Tim Banks is in talks
with an operator to bid on the Rodd hotel chain
and the provincial government golf courses. It’s already public knowledge that the APM Group
is interested in the hotel chain, but Banks is
now saying he is very serious about combining
the two as a package deal.
Rodd Hotels and Resorts, the venerable
Charlottetown-based chain, announced in late
November it was putting up the ‘For Sale’ sign
on its 10 hotels and resorts. And, the province
is on record as saying it wants to sell off its
golf courses — Crowbush, Brudenell, Dundarave
and Mill River.
“We’ve been in very serious discussions with an
operator who we would partner with in our
proposal,’’ said Tim Banks.
“One of the things I think is a great
opportunity, for the province, for Rodds, and
for ourselves as possible buyers, is the chance
of getting the golf courses as part of the
package. I think that to do resort development
on Prince Edward Island, they certainly have to
be tied
together.’’
Tim Banks wouldn’t say who the operator is that
APM is in talks with, but did say it’s a group
that operates hotels and resorts.
“They’ve got a long track record at doing that
and they’ve got experience doing that in
Atlantic Canada as well as the Eastern Seaboard
and in Ontario. They have some scale to them and
are aware of the properties and are quite
interested in it.’’
Tim Banks said the operator wants to come in as
an operator and invest its money to building
some new tools around the business.
“From our perspective, we’re interested in being
the landlord and then looking at what other
upside there is to develop on the property.’’
Tim Banks wouldn’t comment on what kind of money
it would take to purchase the hotels/resorts and
golf courses.
The province has suggested it could cost as much
as $6 to $10 million per golf course, meaning a
buyer would need to write a cheque for $40
million for the courses alone.
It doesn’t hurt that both seem to be available
almost simultaneously.
“The ball is in the court of the province and
Rodd family. They’re (Rodd family) going to call
an RFP (request for proposals).
“I’ve contacted the Rodd group . . . we’re
expecting to get something back from their
accounting group.
“We’ve only seen what the province has talked
about, possibly an RFP in December.’’
Tim Banks sees packaging the two as a golden
opportunity to bring new blood and investment to
the industry, a sign to private operators that
investing in P.E.I. is a wise move. The APM
president also thinks it would boost the
province’s golf industry.
“It would be an opportunity for the province, by
going to a public RFP, to get the best value
they could, and if they were just going it alone
without the opportunity of somebody looking at
the resorts themselves, they probably wouldn’t
be able to get the price that they would be able
to get if they were part of a package.’’
Tim Banks says the proposal, which should be
formal by February or March, would have to
include some level of control of the golf
courses.
Government currently is interested in leasing or
selling the courses but Tim Banks says, from a
developer’s perspective, it’s always better to
have title to the land.
