Robust Hotel Market Predicted
There were 22 hotel transactions totaling $182M nationwide in Q1, according to Colliers. Despite the small number, the firm's projecting $1.25B to $1.75B in transactions for the year. Colliers VP Robin McLuskie (with colleague Russell Beaudry) says they've observed a lot of movement behind the scenes—partnership buy-outs, refinancings, and new JVs. (Just like high school musicals, the real important stuff happens behind the curtain.)
What's going to boost sales (like the Holiday Inn Brampton, above, which sold for $11.8M in Q1): continued low interest rates through 2015, cap rate stability, and institutional capital checking in now that prime city centre hotels in major Canadian cities are available. “There is a broad range of product, and the market is flush with capital looking for quality product,” she says.