Canada’s 5 Biggest First-Half Hotel Deals
Canada is on track for a record year for hotel transaction volume, according to Colliers. Here are five of the top deals in the first half of 2016.
1. Ottawa Marriott Hotel
Buyer: InnVest REIT
Why it matters: By far 2016's highest dollar-value deal to date. Buy-side demand from public companies has more than doubled year-over-year, Colliers notes. But InnVest won’t be public much longer; it’s set to be acquired by Bluesky Hotels for $2.1B.
2. Oak Bay Beach Hotel (Victoria)
Buyer: Noah Holdings Ltd
Why it matters: Bought out of receivership by a China-based firm. The average price per key in Western Canada declined 54% year-over-year, to $92M, which Colliers attributes to a “tapered trading environment” and an abundance of smaller limited-service property deals.
3. Novotel Toronto Centre
Buyer: Not disclosed
Why it matters: Toronto’s biggest hotel deal in the first half of 2016. It was also one of Ontario’s 35 transactions (3,996 rooms, $440M in volume), which represents 62% of the national total. BC came in second with 16 hotel deals (949 rooms, $201M).
4. Park Inn & Suites By Radisson Vancouver
Buyer: Chunghwa Investment
Why it matters: Sold by Silver Hotel Group to China-based Chunghwa for future redevelopment. Western Canada’s transaction volume is 34% below the same period in 2015, with owners employing a hold strategy amid economic uncertainty.
5. Hilton Garden Inn Toronto/Mississauga
Buyer: Bayview Hospitality Group
Why it matters: Acquired by an offshore private investment group as part of a larger $75.2M portfolio that included Crowne Plaza Toronto Airport and Four Points by Sheraton Toronto Airport. This helped TO retain the top spot nationwide for hotel deals.