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InnVest Real Estate Investment Trust owns hotels with brands that include Holiday Inn.
InnVest Real Estate Investment Trust owns hotels with brands that include Holiday Inn.
(Kevin Van Paassen/The Globe and Mail)

New York hedge fund seeks InnVest board shakeup

An activist investor is taking on the board of Canada’s largest publicly traded hotel owner, arguing that shares of InnVest Real Estate Investment Trust can be pumped up 50 per cent with a plan to replace a majority of trustees and create a stronger lodging company.

New York-based Orange Capital LLC has bought up just over 10 per cent of InnVest, a stake worth about $50-million. On Tuesday, Orange will open a public proxy campaign to rally support from InnVest’s owners for the fund’s slate of seven trustee nominees. They include high-profile Canadian executives such as Robert McFarlane, the former chief financial officer of Telus Corp., and Edward Pitoniak, who ran hotel owner CHIP REIT before it was sold in 2007.