Historic Canadian Hotel Faces Uncertain Future After Evergrande Default
One of Canada's most iconic luxury hotels has been placed in receivership following the financial collapse of its Chinese owner. Fairmont Le Chateau Montebello, the world's largest log cabin resort located in Quebec, will be sold after China Evergrande Group failed to make payments on its substantial debt.
Court-Appointed Receiver Takes Control
Quebec's Superior Court has appointed Philippe Jordan, a partner with PricewaterhouseCoopers LLP, as receiver for the property earlier this month. According to court documents filed this week, the insolvency process was initiated after Evergrande's subsidiary, Millennium Golden Jiachen Hotel Holdings Ltd., defaulted on its financial obligations.
The troubled subsidiary owes $58 million to creditors, including $11 million to an affiliate of Desjardins Group. The Canadian lender filed the motion that ultimately led to the court ordering the hotel's sale.
"We are currently taking the necessary steps to contact stakeholders, including Millennium and Accor," Jordan confirmed in a phone interview. "Ultimately, the action plan will include putting the hotel up for sale."
A Storied History Meets Modern Financial Crisis
The 95-year-old hotel boasts an impressive legacy, having hosted numerous luminaries throughout its history including Grace Kelly and Margaret Thatcher. Originally opening as a private club during the Great Depression, the resort now operates under management by Accor SA's Fairmont Hotels and Resorts.
The property features:
- More than 211 rooms and suites
- An 18-hole golf course
- A full-service spa
- Extensive conference facilities
Located 134 kilometres west of Montreal in Montebello, Quebec, the hotel will continue normal operations throughout the sale process, ensuring no disruption to guests or employees.
Evergrande's Global Reach and Local Impact
Evergrande purchased the historic property in 2014 from Oxford Properties Group Inc., a unit of the OMERS pension plan. The developer's collapse represents the most significant failure in China's prolonged property crisis, which has dramatically slowed the country's economic growth and triggered widespread distress throughout the construction industry.
The company, which initially defaulted in 2021, was once China's largest developer by sales volume. Its financial troubles have now reached across the globe to impact one of Canada's most beloved hospitality landmarks.
The insolvency proceedings were first reported by the Journal de Montreal, bringing national attention to the fate of this Quebec tourism treasure.
