Slowdown In Hotel Investment Activity
Colliers International Hotels reports a robust Q3 in the hotel transaction market, with $897M in national transactions (127% higher than the previous quarter). The third quarter was catapulted by the sale of the Westin Canadian Hotel portfolio—which comprised five hotels, selling for $765M (the buyer was Starwood Capital Group, and it was the the largest multi-property trade since 2007). The Westin Bayshore on Bayshore Drive (above) was part of that, selling for just over $150M.
Overall, though, say hotel investment activity in Vancouver has been relatively quiet in '13, says Colliers analyst Russell Beaudry (snapped with VP Robin McLuskie). The transaction volume in Vancouver year-to-date is $200M, with most of that from the Westin deal. "Given strong hotel investment fundamentals in the city, most owners are opting to hold or re-finance, versus selling," he says.