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 ********** Centre and Rogers Centre, the homes of Toronto’s pro hockey, basketball, baseball and football teams.