Canadian travel group Transat A.T. Inc is pulling out of its joint venture business Ocean Hotels to concentrate on its own hotel division.
Transat is selling its 35% stake in Ocean Hotels to partner Spanish company H10 Hotels for about $151 million.
Ocean Hotels has resorts in Mexico, Dominican Republic and Cuba.
The sale proceeds will go toward developing its own hotel business, Transat CEO Jean-Marc Eustache said.
"Our hotel division will take shape in the near future, including with the hiring of a president to lead it," Eustache said in a statement.
"We are very excited at the idea of moving forward with this priority initiative for the company. Owning a minority position in Ocean has been a valuable venture for Transat both economically and strategically, allowing us to develop an expertise and insight into the hotel business. Being a minority owner was no longer an interesting use of our capital as we embark on further investments in the sector," Eustache added.
The deal is expected to close by early November.
The parent of Canadian leisure carrier Air Transat also has a portfolio of more than a dozen travel businesses in the Americas and Europe, including Transat Holidays.
