Canad Inns puts Portage Avenue hotel, MET, office building ‘connected campus’ up for sale

Downtown entrepreneurs are watching with wary eyes as a prominent hotel and event centre hits the market.

Canad Inns is selling three downtown properties — the Radisson Hotel, Somerset Building and Metropolitan Entertainment Centre.

The trio lines Portage Avenue and Donald Street, just east of the Canada Life Centre. They’re listed online as a “connected downtown Winnipeg campus.”

Jessie He works across from the 29-storey hotel, at the Tipsy Cow. Most patrons are hotel guests who’ve trekked across Portage Avenue, she said.

“I feel it’s really bad news for us,” He said of the listing.

Canad Inns didn’t respond to Free Press questions by end of day Wednesday.

A spokesperson previously told CBC that Canad Inns remains committed to Winnipeg’s downtown, and it’s working on business strategies for some of its assets under management.

Mayor Scott Gillingham and downtown business development groups all downplayed the impact of a potential sale.

Still, He is nervous considering a recent string of announced or completed closures in the area.

Discount chain Giant Tiger will close its Donald Street location in November and Canad Inns closed its Tavern United restaurant across from the Canada Life Centre earlier in the summer.

“It’s definitely not a good look on downtown.”

“It’s definitely not a good look on downtown,” said Nick van Seggelen, owner of Bodegoes Restaurant, which has locations in Cityplace and the Exchange District.

Entrepreneurs the Free Press spoke to brought up the planned closing of Giant Tiger and Tavern United.

“I think the mayor needs to spend some more time on the ground downtown and see what’s actually happening here,” van Seggelen said.

The massive redevelopment of Portage Place mall has led to an increase in the number of transient people at Cityplace, van Seggelen said.

There is a greater police presence there now, but “we still need more,” he added.

He, a Tipsy Cow bartender, worried about hotel guests’ experience along Portage Avenue, where there is a large vagrant presence. The smell of urine can be strong, she said, “so I don’t think any visitor across the street will feel good.”

Few Winnipeg residents are customers, He added.

Mayor Scott Gillingham touted “more than a billion dollars” in investment along Portage Avenue, including in-the-works housing, medical facilities, hotels and a grocery store.

“Commercial property transactions are a normal part of a healthy economy,” he said in a statement.

“It would be far more concerning if no one was investing, buying or selling. With this much new development transforming the downtown, it is not surprising that some property owners are testing the market.”

Both the Downtown Winnipeg BIZ and CentreVenture Development Corp. echoed that Portage Avenue — and the greater downtown — are in a transition period.

“It is really about a private enterprise making decisions on its future holdings.”

CentreVenture has a hand in five developments drawing roughly $80 million in private capital, said chief executive Rochelle Squires. Redevelopments include the Marlborough Hotel, Maw Garage and 290 Garry St.

“It certainly doesn’t, to my mind, make an impression about the state of downtown,” Squires said of Canad Inns’ decision. “It is really about a private enterprise making decisions on its future holdings.”

Canad Inns bought the 263-room Radisson Hotel in 2008. A year earlier, Leo Ledohowski — the founder of Canad Inns — bought the historic Metropolitan Theatre. His company oversaw roughly $16 million worth of renovations to transform it into today’s Metropolitan Entertainment Theatre.

Ledohowski died last year.

Canad Inns purchased the Somerset Building — a nine-storey office and commercial tower next to the hotel — in 2018. The 110,988-square-foot building houses Opportunities for Employment, among other organizations.

The Manitoba Métis Federation has a “possibility” of buying the sites if they meet the nation’s strategy and growth plans after examination, president David Chartrand wrote in a statement.

The Radisson, at 288 Portage Ave., is assessed at $22.3 million. City assessments for 281 Donald St. (the MET Centre) and 294 Portage Ave. (the Somerset Building) are $1.9 million and $9.6 million, respectively, in 2027 notices.

An online listing places the three buildings’ cumulative size at 607,116 square feet; Colliers is selling the locations.

The three sites are connected to Winnipeg’s skywalk system and are part of the city’s sports, hospitality and entertainment district.

P & S Realty Holdings is the registered owner of 288 Portage Ave.; Lea Ledohowski is listed as a director.

Canad Corp. of Manitoba is the registered owner of the MET Centre, while Canad Centre – Downtown is listed as owning the Somerset Building.

gabrielle.piche@winnipegfreepress.com