Ottawa airport hotel moving forward without tax break

A $55-million airport hotel is set to be built at the Ottawa International Airport, even though Ottawa City Council voted against a property tax break earlier this year.

Germain Hotels, the company behind the airport hotel, is expecting to open the hotel in 2025, marking their third hotel in Ottawa. The company plans to build a 178-room hotel that will connect directly to the airport terminal via a pedway.

Hugo Germain, vice-president of operations with Germain Hotels, said this also marks the company’s third airport hotel in Canada, following Germain airport hotels opening at Toronto Pearson in 2012 and Halifax Stanfield International Aiport in 2013.

“Twenty months building time is expected and currently, we’re starting to protect the area and work will start any day,” said Hugo Germain, the vice-president of operations with Germain Hotels in an interview with CityNews Ottawa.

The ultra-modern ‘Alt’ hotel will include meeting rooms, a full-service restaurant, cafe and gym, added Germain.

Riley Brockington, city councillor for River Ward, told The Sam Laprade Show , there was extensive debate at Ottawa City Hall surrounding Germain Hotels’ request for a tax break, prior to moving forward.

“Germain Hotels had applied in consultation and partnership with the airport for some economic relief from the city,” said Brockington. “Part of the airport land is designated as a economic zone and there’s a process companies can go through.”

Germain Hotels and the Ottawa International Airport Authority applied for a community improvement plan grant, meeting the criteria for a $13.1 million tax break over 25 years – but approval from city council was required.

According to the River Ward councillor, the hotel chain’s request for a $13-million municipal tax break was denied. The request was amended to a $3.7-million tax incentive over 10 years, and they were not successful, explained Brockington.

Mayor Mark Sutcliffe, as well as 17 councillors voted against the request, while only seven voted in favour.

Brockington explained the company has been transparent in their hopes to expand further across Ottawa. A hotel attached to the airport comes with significant benefits, especially as passenger volume rises exponentially, related to COVID-19 pandemic recovery and population growth, he added

“It just didn’t sit well with the majority of council to have tax waved for this company that would basically be covered by tax payers,” he expressed. “I did not support this and it’s a program we as council will be looking at this term to see whether or not it should stay in place.”

The councillor goes on to say, the company has been eager to break ground, and appears ready to move forward, even without a grant.

“Obviously they’ve crunched their numbers and may have modified their plan,” he pointed out. “It’s expensive but they believe this could be economically viable and they’re going to do it on their own.”

Councillor Brockington acknowledged that the addition of an airport hotel is a step in the right direction as a capital city, ensuring Ottawa International Airport offers amenities that attract passengers and enhances their travel experience.

“If you can have a higher-end hotel attached to the airport that makes travel seamless, that’s a positive,” he said. “I want our airport to be successful and the debate really was whether or not tax payers should be involved in this and council’s decision doesn’t mean we’re not supportive going forward.”

Germain said the company run by family and employees for over 30 years is an exciting addition to the nation’s capital.

“Travellers going on vacation can leave the hotel with flip flops and shorts and don’t have to worry about wearing a coat,” said Germain. “They can basically be at the gate in less than 15 minutes and especially in winter, it’s a great way to avoid delays.”