The new owner of the Belleville Park Resort outgunned a rival bid in B.C. Supreme Court Tuesday with a successful offer of $5.65 million for the landmark complex near the Inner Harbour.

Dominion Grand Hotel Group beat out a bid of $5.2 million from Saskatchewan's d3h Hotels in a court-ordered sale of the 40-year leasehold interest in properties associated with the buildings.

The 1.87-acre site bordered by Belleville, Oswego, Quebec and Pendray streets near the B.C. legislature consists of the Huntingdon Hotel and Suites, the Gatsby Mansion Hotel and two restaurants.

The sale closes in 10 days, said Randy Holt, vice-president of DTZ Barnicke Victoria Ltd., the company marketing the property.

Dominion Grand Hotel Group president Mike Jackson said in an interview building improvements will run between $2 million and $3 million. He would like to get a start on exterior upgrades prior to the summer tourist season.

"This is our first owned asset for Dominion Grand. The company is quite young. We incorporated the company in October 2010," Jackson said. The group is headquartered in Vancouver.

"With a separate company that we are buying the hotel under, it will be operated by the Dominion Grand Hotel Group. The investment participants are a consortia of Asian and Canadian investors," Jackson said.

The group operates a Comfort Inn and Suites in Medicine Hat, Alta., a Comfort Suites in Kelowna, and a Best Western Plus, also in Kelowna, he said. A new hotel is also being built in Saskatoon.

Plans are still being developed but Jackson would like to add more colours to the hotel complex in order to highlight its heritage features. "It's our plan to bring that character back to life," he said.

The property is appealing because it is in Victoria, in a good location and has heritage elements. "We think it has some unsatisfied potential of a fairly significant measure. I think it is relatively well known that the property would benefit, without question, from some recapitalization," Jackson said.

Reliant Capital is the seller of the property. That firm foreclosed on hotel owner Rita Roy in April 2009. Reliant stated in court documents that it was owed $12.9 million.

The hotel complex was originally listed for $12 million, but the price dropped in subsequent years. The site is owned by the Plasterer family of Victoria through its company, International Travel Inns Ltd.

Reliant said in court records it considered the d3h offer was reasonable. Saskatoon-based d3h owns 11 hotels in Saskatchewan and Alberta.

D3h appeared in Supreme Court with its offer.

A Dominion representative had two offers prepared, one to show and the other in a sealed enveloped in case the matter went to a sealed bid, Holt said.

Dominion offered $5.65 million and d3h did not increase its bid, Holt said.

Dominion officials had been interested in the Huntingdon and Gatsby before, putting together an earlier purchase, which was not completed, Jackson said.

cjwilson@timescolonist.com