January 21, 2005

Toronto developer wants to turn upscale Grimsby hotel into retirement residence

GRIMSBY, Ont.

A Toronto developer of retirement homes has offered to buy the Kittling Ridge Winery Inn and Suites, if this Niagara town will allow it to be converted to a “hotel for seniors.”

The 79-room upscale hotel went into receivership Oct. 31, 2003 with $10 million in debts.

Despite marketing attempts by the receiver to increase business, the hotel continued to lose money during the past 14 months, said Paul Casey, a spokesman for the receiver, Kroll Restructuring Ltd.

“It was built as a destination hotel beside a highway corridor, but during its four-year existence it has continuously lost money and proven that it’s not,” Casey said.

“The most viable option for the property is to convert it into a retirement residence,” he said.

The offer by Kingsway Arms Management Inc., is conditional on the successful rezoning of the property.

The asking price was $10 million, but the offer remains confidential.

Kingsway runs nine similar sites in Ontario.

The boutique hotel would have done much better if it had been built on the escarpment or beside a winery, said Kingsway president Patrick Byrne.

“But it was built as a destination hotel in an overnight location.”

“As soon as I saw it, I knew this was just what we were looking for,” Byrne said.

“It’s a gorgeous, luxurious building with a wonderful view of the lake.”

The inn was using the Kittling Ridge name under a licensing agreement with Kittling Ridge Estate Wines and Spirits, which is a separate business and not involved in the receivership.

The Canadian Press

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