TORONTO – The landmark Royal York Hotel in downtown Toronto will have new owners under an agreement between InnVest Real Estate Investment Trust (TSX:INN.UN), the KingSett real estate company and Ivanhoe Cambridge.

The joint venture will acquire the 1,363-room hotel for a total of $186.5 million.

The partners also plan $50 million of renovations on the 85-year-old hotel over 24 months after the deal closes.

KingSett will acquire a 60 per cent interest in the Royal York, InnVest will acquire 20 per cent and Ivanhoe Cambridge will retain 20 per cent.

InnVest is a publicly traded real estate trust and disclosed that its stake will cost $37.3 million. KingSett is a private company and didn’t disclose the price for its stake while Ivanhoe Cambridge is an arm of the Quebec-based Caisse pension system.

The Royal York Hotel is near one of the city’s major transportation hubs at Union Station and close to major venues including the Air Canada Centre and Rogers Centre, the homes of Toronto’s pro hockey, basketball, baseball and football teams.