DAWSON CREEK, B.C. — Black Diamond Group Ltd. announced today that it has signed an agreement to assume the lease and ongoing operations of its 1,244-room Sunset Prairie Lodge.
The company said that the camp, which is located between Fort St. John and Dawson Creek and was previously rented to Encana Corp., will be converted into an open lodge to service demand for accommodations from multiple customers in the area. The camp will be operated by Black Diamond’s Cygnus partnership with the West Moberly First Nations.
Under the terms of the Agreement, Black Diamond will receive a cash payment of $11.2 million from the current tenant and customer, Encana. In exchange for the cash payment, Black Diamond will take responsibility for the eventual cost of dismantling the lodge.
“We are currently experiencing good occupancy levels and we expect lodging demand for many years to come at Sunset Prairie Lodge,” said Trevor Haynes, President and CEO of Black Diamond. “In operation since 2015, it is one of our most contemporary facilities comprised of executive style rooms that are typically preferred in the current market. Sunset Prairie Lodge is conveniently located in an area of strong development activity covering a broad range of natural resource sectors.”
With the conversion of Sunset Prairie Lodge, Black Diamond’s capacity at its five open lodges will increase by 60 percent to approximately 3,300 rooms.