Transat AT announced on Thursday that it has reached an agreement to sell its 50 percent stake in luxury hotel Armony Luxury Resort & Spa to its co-shareholder, owner Marival Group.
• Also read: Here are 4 ways to get compensation in the event of a potential Air Transat strike
• Also read: Will Transat flight attendants go on strike from January 3rd?
The $15.5 million transaction for this hotel venture near Puerto Vallarta on Mexico's Pacific coast is scheduled for the first quarter of 2024, the Quebec company said.
The proceeds from this sale will allow Transat AT to repay the debt, including part of the guaranteed loan taxes, according to the airline, which reported financial results for the fourth quarter of 2023.
The sale of this luxury hotel, acquired by Transat AT in 2017, to develop its hotel subsidiary, is part of the company's strategic framework, which envisages a refocus on aviation activities.
In its financial balance sheet, Transat AT recorded a turnover of $764.5 million in the quarter under consideration, an increase of $191.3 million and a net profit of $3.2 million, an increase that offset the losses of 25 .3 million for the current fiscal year.
“Thanks to the solid execution of its strategic plan, Transat has strengthened its positioning in the leisure travel sector in Canada,” said Annick Guérard, president and CEO of Transat, which reported cash flow of $321.8 million for fiscal year 2023.