Hotel Transactions Tumble
There have been $570M in hotel transactions nationwide in 2014, considerably less than the $840M recorded by this time last year. But Colliers International Hotels’ manager Russell Beaudry (here with group VP Robin McLuskie) sees things picking up by year-end. There’s a “broad appetite” for hotels across all segments, and Russell predicts overall total volume for 2014 to potentially hit $1.5B, in line with the running five-year average. Among the most significant ones this year was the sale of the 477-room Fairmont Empress Hotel in Victoria, B.C. to Bosa Developments. (Transaction volume this year has been weighted more heavily in Western Canada.)
Russell says “fierce” competition for real estate classes like office and retail is prompting investors to venture into the hotel sector. Brands like Hilton Garden Inn and Courtyard by Marriott are in particularly high demand. For its part, Colliers sold the Holiday Inn Mississauga (above) for $70M in August as part of a three-property, 416-room portfolio.