Groupe Le Massif and Club Med have just received a new loan of $5.7 million from Investissement Québec (IQ) to support the finances of Club Med Québec Charlevoix, five months after the opening of the hotel complex.
This loan is part of the Concerted Temporary Action Program for businesses [PACTE]set up by Quebec during the pandemic, indicated the management of Groupe Le Massif, adding that this sum will be used to “respond to the shortfall in connection with health measures”.
In the notarial deed, we read that IQ registered a mortgage on the hotel in the amount of $5.7 million to ensure the payment of this debt of the company Complexe hôtelier Massif de Charlevoix.
Remember that IQ is also one of the shareholders of Groupe Le Massif.
In October, before the opening of the 302-room complex located in the municipality of Petite-Rivière-Saint-François, Club Med entrusted the Log that it had an occupancy rate “between 70% and 80% until mid-March”. Reservations were also confirmed until June.
Not a first
This is not the first time that Groupe Le Massif has received a check from PACTE, which is under the responsibility of the Ministry of the Economy and managed by IQ.
In 2020, $3 million had been paid to the Quebec company via this program to support the finances of the Massif de Charlevoix. Management says it has repaid, so far, a million dollars of this debt.
In 2020, Le Massif Group, which was responsible for the construction of Club Med, also received $5 million under the Support Program for the Development of Tourist Attractions (PADAT).
This amount was to be used to support infrastructure projects on the mountain, whose overall bill was to exceed $10 million, said the president of Groupe Le Massif, Claude Choquette, in an interview.
Overall, the Club Med project required investments of $130 million, including around $38 million from the public, notably in the form of repayable loans.
For its part, the Club Med brand, which belongs to the wealthy Chinese group Fosun, would have spent $20 million in this hotel complex.