VM Hotel Acquisition Corp. (TSX:VMH.U) signed an agreement to acquire Hyatt Arcade Hotel from Skyline Investments Inc. for December 5, 2021. In a related deal, Skyline Investments will sell 90% of its rights in the Renaissance Cleveland Hotel. In related transactions VM Hotel agreed to acquire Battery Wharf, The Renaissance, Sheraton Centre and Sheraton Golf & Spa for $411 million. The $411 million purchase price is expected to be funded through a combination of approximately $260 million of mortgage financing and $20 million raised through the issuance of VMH shares to a vendor, with the remaining portion funded through cash on hand and the PIPE Investment. The expected proceed from Hyatt is $49.5 million reflecting a purchase price of $50.9 million less assumed debt of $1.44 million. The deals contemplates Skyline being paid by way of cash on Closing in the amount of $75.18 million, plus $20 million by way of newly issued shares. The purchase value is subject to closing adjustment. Following the Qualifying Acquisition, VMH's current President and Chief Executive Officer, Ian McAuley, Executive Chair, Tom Vukota, and Chief Financing Officer, Tom Wenner will continue to lead the business. VMH is guided by a highly capable and experienced board of directors including independent board members Tracy Sherren (current President, Canadian Commercial, Starlight Investments), Charles Suddaby (who has provided advisory and valuation services to the hotel industry for over forty years) and John Andrew (Executive Director of Queen's University's Commercial Real Estate Executive Seminars and a professor at Queen's School of Urban and Regional Planning). Blake D. Lyon (current Chief Executive Officer and a Director at Skyline Investments (TLV: SKLN) (“Skyline”)) will join the board at closing. The Transaction is subject to regulatory and other approvals, the Purchaser completing an equity raise and closing on other hotel purchases, due diligence, franchisor approvals, financing and other conditions. The Transaction is also subject to the approval of the Board of Directors of the Skyline, subject to obtaining certain regulatory approvals, the satisfaction of certain conditions (including the approval of the TSX) and the continued listing of VMH's common shares on the TSX. The transaction is expected to close during the first quarter of 2022. Echelon Capital Markets acted as financial advisor, Janney Montgomery Scott LLC acted as financial advisor and Goodmans LLP acted as legal advisor to VM Hotel Acquisition Corp.

VM Hotel Acquisition Corp. (TSX:VMH.U) cancelled the acquisition of Hyatt Arcade Hotel from Skyline Investments Inc. on May 30, 2022.