CIB commits $38M to enable KingSett Capital’s decarbonization of the historic Fairmont Royal York
TORONTO – The Canada Infrastructure Bank (CIB), Fairmont Royal York and KingSett Capital today announced an agreement which will see the CIB finance $38 million toward significant energy retrofits at the landmark hotel.
The CIB’s financing will help Fairmont Royal York become a leader in sustainable accommodations. The hotel, which first opened in 1929, will target a zero-carbon balance and pursue the Canada Green Building Council’s Zero Carbon Building Standards Certification™ in 2023. The investment will result in a significant reduction in carbon emissions, with the aim of reducing the iconic hotel’s emissions by over 80 per cent.
To date, the CIB has committed more than $800 million toward building energy retrofits. The financing will help cover upfront capital costs of the retrofits to enable the decarbonization of the hotel.
Fairmont Royal York, part of world leading hospitality group Accor, is committed to taking a leading role in the travel industry's sustainable development. This large-scale initiative marks a new era in the hotel's legacy as one of Toronto's most renowned destinations with more than 1.5 million annual visitors.
The investment is expected to achieve financial close in late 2022.
The CIB’s financing solution will help decarbonize a historic Canadian landmark, paving the way forward for future green retrofits within the hospitality sector. Our partnership with KingSett Capital enables a greener tourism economy and we stand ready to develop more innovative investments, accelerate projects and help meet climate change targets.
We are proud to be partnering with the CIB to fund the decarbonization of the iconic Fairmont Royal York. This initiative, made possible by the CIB, adds strength and resilience to one of our core assets and advances KingSett’s sustainability strategy. We are focused on setting meaningful reduction targets, executing decarbonization programs for our core assets and, most importantly, doing what is right for our stakeholders and the environment.
Fairmont has a longstanding history of environmental stewardship, and this important effort is a transformative step in the hotel’s journey toward minimizing climate change and reinforcing our pledge to our planet. We are fortunate to have steadfast partners that share our commitment to environmental sustainability, as well as our enthusiasm for ushering in the next chapter in hospitality. With the travel industry's vibrant recovery came an increased expectation around sustainability, and it is our responsibility to continue to embrace impactful sustainability practices that reduce our environmental footprint and contribute to a better future for all.
Quick Facts
- According to the Hotel Association of Canada, prior to the COVID-19 pandemic, the accommodations industry generated nearly $22 billion in revenue annually and employed over 300,000 people.
- This is part of the CIB’s Building Retrofits Initiative (BRI) which provides financing for energy retrofits projects.
- Fairmont Royal York is one of two hotel properties owned by KingSett Capital-managed funds.
- The CIB seeks to invest up to $5 billion into green infrastructure which supports climate change action and sustainable economic growth.
- The CIB’s investments are subject to approval by its Board of Directors.
