Canadian hotel investment volume hit $4.1B last year via the sale of 240 properties, a 70% jump from 2015 and the second-best year on record, according to fresh figures from Colliers International. Here are Canada’s five biggest single-asset hotel deals of 2016.
1. Four Seasons Hotel Toronto
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Seller: Kingdom Holdings (chaired by Saudi Arabia’s Prince Alwaleed Bin Talal Bin).
Buyer: Shahid Khan
Price: $225M | Keys: 259
Noteworthy: Canada’s largest-ever single-asset price-per-room deal and a strong signal of Toronto’s arrival as a legit luxury hotel market. It is the first hotel buy for Khan, owner of the Jacksonville Jaguars, founder of auto equipment supplier Flex-N-Gate Group and owner of London’s Fulham Football Club.
2. Ottawa Marriott Hotel
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Seller: Larco Hospitality
Buyer: InnVest REIT
Price: $115M | Keys: 489
Noteworthy: InnVest was subsequently acquired by Bluesky Hotels & Resorts for $2.1B, one of the biggest portfolio deals of 2016 with 94 hotels. InnVest, which held a 50% stake in Choice Hotels Canada, gives Bluesky a global platform to pursue North American growth opportunities.
3. Fairmont Vancouver Airport
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Seller: Oxford Properties Group
Buyer: InnVest REIT
Price: $90M | Keys: 386
Noteworthy: InnVest acquired a leasehold interest in the Fairmont Vancouver Airport, constructed in 1990. The deal enhances InnVest’s geographical diversification in the Vancouver market and expands its relationship with Fairmont. The trust is also a co-owner of the Royal York Hotel.
4. Oak Bay Beach Hotel
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Seller: Bison Properties
Buyer: NOAH Holdings Ltd.
Price: $62M | Keys: 120
Noteworthy: Bought out of receivership by China-based NOAH. Foreign capital was a prominent theme in 2016, Colliers said, with cross-border groups, primarily from Asia, investing $2.75B (67% of total volume) in Canadian hotels, surpassing combined total volume between 2010 and 2015 by over $1B.
5. Novotel Toronto Centre
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Seller: Olde Yorke Esplanade Hotels
Buyer: Silver Hotel Group
Price: $52M | Keys: 262
Noteworthy: This was one of Toronto’s biggest hotel deals of 2016. Also last year, Silver Hotel Group bought Pantages Hotel Toronto Centre from Skyline International Development, adding to a Toronto portfolio that also includes Bond Place Hotel, Radisson Admiral Harbourfront and Strathcona Hotel.
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