Holman Grand to reopen

Homburg International has purchased the Holman Grand Hotel and several other downtown Charlottetown properties, and announced the hotel will reopen immediately.

The hotel was included in the purchase of Dyne Holdings from Cominar REIT by Homburg International. Dyne Holdings also owns the Confederation Court Mall and several office buildings in the downtown.

• National Bank Tower
• BDC Place
• Homburg Financial Tower

Recently the hotel's web site carried an announcement that it expected to reopen soon, which was confirmed Wednesday with the Homburg International deal.

In a news release, Homburg International said loans made by the government on the hotel are preserved without any write down, and that $1.75 million has been set aside to pay contractors still owed money for its construction.

The province of P.E.I., through Island Investment Development Inc., holds the first mortgage on the hotel. That mortgage was worth $14.7 million. It is not clear how much of that loan is outstanding.

Cominar said in a news release construction-related trade payables alleged to be secured by liens on the hotel total about $4.1 million. Some of those debts may be settled in a meeting of creditors planned for later this month.