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(Bloomberg) — China Evergrande Group’s iconic log-cabin hotel in Canada has been placed in receivership after the defaulted real estate developer failed to make payments on its debt.
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Fairmont Le Chateau Montebello, which has hosted luminaries including Grace Kelly and Margaret Thatcher, will be put up for sale by PricewaterhouseCoopers LLP, the court-appointed receiver, according to documents filed this week on the accounting firm’s website.
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Evergrande’s collapse was by far the biggest in a crisis that dragged down China’s economic growth for years and led to a record spate of distress among builders. The company, which first defaulted in 2021, was once the country’s largest developer by sales.
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The firm’s insolvent subsidiary, Millennium Golden Jiachen Hotel Holdings Ltd., owes C$58 million ($41 million) to creditors, including C$11 million to an affiliate of Desjardins Group. The Canadian lender filed a motion to put the hotel up for sale, according to court documents.
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The 95-year-old hotel will remain open during the sale process. Billing itself as the world’s largest log cabin, the resort opened as a private club in the depth of the Great Depression and is now managed by Accor SA’s Fairmont Hotels and Resorts.
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The hotel, with more than 211 rooms and suites, is located 134 kilometers (83 miles) west of Montreal and includes an 18-hole golf course, a spa and a conference center. Evergrande bought it in 2014 from Oxford Properties Group Inc., a unit of the Omers pension plan.
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Quebec’s Superior Court appointed Philippe Jordan, a partner with PwC, to act as receiver earlier this month. The insolvency process was first reported by the Journal de Montreal.
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“We are currently taking the necessary steps to contact stakeholders, including Millennium and Accor,” Jordan said in a phone interview. “Ultimately, the action plan will include putting the hotel up for sale.”
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