Horizon North Logistics announced two new contracts on Monday to build modular hotels in B.C.
One of these agreements is to design and build a 119-room, five-storey modular Marriott Fairfield Inn & Suites on a land parcel owned by Horizon North in Kitimat.
The second contract is with an unnamed repeat client for a five-storey hotel, select service modular hotel in Prince George.
Horizon North also announced it has completed its $16.5-million acquisition of Ontario-based modular construction provider NRB Inc.
“We view the Kitimat Marriott contract award as the key event,” GMP FirstEnergy analyst Ian Gillies wrote in a research note following the annoucments.
“We had previously understood that Horizon had been trying to partner with Marriott as the chain has plans to build 50-80 modular hotels in Canada over the next few years. In order to become certified as a Marriott ‘provider of choice’ builders must have built at least one Marriott hotel, so this hotel will largely function as a ‘demonstration’ of Horizon North’s building capabilities to win future contracts.”
The vast majority of the Marriot’s planned hotels are in Ontario, so the NRB Canada acquisition likely makes Horizon a more attractive building partner,” Gillies noted.
“The Marriot announcement is also positive as it continues to reinforce Horizon North’s LNG strategy. The chain of the other hotel was not disclosed, but Horizon North has previously built hotels for the Ramada and Coast brands.”
The new Kitimat hotel is expected to be complete in late 2019.