Quebec’s Superior Court ruled that the Varin and Lavy group had failed to demonstrate that the choice made by receiver PricewaterhouseCoopers (PwC), which has overseen the sale process since the property was placed into receivership in November 2025, was unreasonable. The court also allowed its decision to take immediate effect, meaning that any appeal by the unsuccessful investors will not halt the transaction.
A decisive factor: the Fairmont management contract
The dispute centred in particular on the future of the hotel management contract held by Fairmont Hotels. The Varin and Lavy group, which claimed to have submitted a financially superior offer that was more favourable for creditor repayment, had indicated it intended to terminate this contract if its bid succeeded. Receiver PwC had nonetheless recommended the offer from Westmont Hospitality, stressing that upholding the existing management contract and preserving the complex’s heritage status were essential criteria in assessing the bids, rather than the amount offered alone.
The court’s ruling states that the receiver had consistently informed prospective buyers that the continuity of the Fairmont contract would weigh heavily in the final decision, regardless of the price offered. The agreement reached with Westmont Hospitality meets both conditions: the group has long-standing alliances with Fairmont, alongside other international brands, and had already established a foothold in the French hotel market by taking over several properties from the Naos group.
A heritage asset under pressure since Evergrande’s collapse
Built in 1930, Château Montebello is the largest log structure in the world and one of the iconic hotels of Canada’s heritage. The property, which had belonged to Chinese real estate giant Evergrande since 2014, was placed into judicial receivership following the liquidation order issued against the group by a Hong Kong court. The hotel continues to employ close to 300 people and has remained in uninterrupted operation under Fairmont Hotels throughout the proceedings.
Next steps
Under the terms of the accepted offer, the sale is expected to be finalised by 15 November 2026. The takeover by Westmont Hospitality is not expected to bring any change to the hotel’s day-to-day management, which will continue to be handled by Fairmont Hotels until 2031. Approached by the Canadian press, receiver PwC said it did not wish to comment further on the matter, in keeping with the rules governing ongoing legal proceedings.
At a glance by The Hospitality Tribune
Quebec Superior Court approves Château Montebello sale to Westmont Hospitality
Court rejects competing bid from Quebec investor group Varin and Lavy
Fairmont Hotels management contract preserved through 2031
Sale expected to close by November 15, 2026
Property under PwC receivership since November 2025 following Evergrande’s collapse
211-room, 1930-built log hotel retains its heritage designation
