MONTREAL -- Transat A.T. says it's rethinking the future of its investment in Ocean Hotels and will decide in the coming months whether to buy full ownership of the business or sell its 35 per cent stake to partner H10 Hotels.

The announcement Thursday was included in the Montreal-based company's latest financial report, which showed a $41.7-million loss for the financial year ended Oct. 31.

Transat says the Ocean Hotels venture would have increased its profits from last year except for the foreign exchange impact, and the venture is aiming to reach 5,600 rooms by 2019 through a mix of owned and operated hotels.

"The corporation expects to be in a position to make its decision public in the coming months and does not intend to make any further comments in the meantime," Transat said.

The loss in its latest financial year amounted to $1.13 per diluted share compared with a profit of nearly $42.6 million or $1.10 per diluted share in the previous year.

Revenue for the full year totalled almost $2.89 billion, down slightly from nearly $2.90 billion a year earlier.

The loss for the year included a $15.8-million charge related to trademarks in its second quarter and a $63.9-million goodwill impairment in the fourth quarter.

Transat said the goodwill charge was triggered by a recent deterioration in its summer results in a changed market environment, which it says included substantially more industry capacity that affected selling prices and loads.

On an adjusted basis, Transat said it lost $15.5 million or 42 cents per share for its latest financial year compared with an adjusted profit of $45.9 million or $1.19 per share in the previous year.

"The year just concluded has been challenging for our bottom line, but particularly fruitful when it came to making progress on our transformation plan," Transat CEO Jean-Marc Eustache said in a statement.