The 401 Group of Companies plans to enter the hotel business, further expanding its diverse portfolio that already includes auto retail, recreational vehicles, powersport boats, a restaurant, and a charitable foundation.
The Cambridge, Ont.-based organization will break ground next year on a Marriott Hotel in Kanata. It is expected to open some time in 2026. The hotel will be near the Canadian Tire Centre, home to the Ottawa Senators of the National Hockey League.
The company’s Vice President Ted Lancaster told Canadian auto dealer the group purchased land a few years ago near the arena. They sensed an opportunity to build a hotel in Kanata because there aren’t many in the area. Lancaster said his company selected the Marriott due to its brand reputation and its new Courtyard image.
“It fits with us and how we conduct ourselves from a business standpoint,” said Lancaster. “We like to ask our team to be polished and humble. Marriott has a great presence in the marketplace.”
He said there are many uses for a hotel, factoring in the Senators hockey games, concerts, sports tournaments, and businesses.
“It’s a good location, a good proposition and we’re seeing increases in uses for hotels coming out of COVID,” said Lancaster. “People are starting to travel more.”
He also said 401 will find a company that specializes in hotel operations to build and run it. The plan is similar to what the company did three years ago, after it entered the hospitality business by purchasing the Blackshop Restaurant — close to its headquarters in Cambridge.
The restaurant had been in existence for some 50 years. Lancaster said the company made some changes to the menu and made it upscale. He said the company had been entertaining its various clients in restaurants in the area and decided to purchase one.
“You can pay another restaurant for their services or you can acquire a restaurant and you’re paying yourself indirectly,” said Lancaster.
The 401 Group recently purchased Baywest Nissan, Baywest Mitsubishi and Owen Sound Toyota to add to its dealerships. The company began in 2011 and has grown into one of Canada’s fastest growing dealership groups. In April, it announced it expanded to Manitoba, buying Auto Show Sales and Finance in Winnipeg.
“That was a pretty major expansion,” said Lancaster. “It was time for us. We’ve got great representation in Ontario. This was an opportunity to challenge ourselves in another market, but in close proximity to our locations here. We’ve seen some great results so far and we’ll look forward to expanding beyond our borders again.”
The company also plans to expand its dealership business with some acquisitions in the next two months. “(It) continues to grow and we do it strategically,” said Lancaster. “We look at specific locations. The diversification component is really important to us.”
The company has 19 new car dealerships, representing nine brands. It is currently building new open-point dealerships in Woodstock and Windsor. Collectively, from all its divisions, it has 38 rooftops representing more than 60 brands and has more than 1,100 employees.
It started out with four.
