Robust Hotel Market Predicted
There were 22 hotel transactions totaling $182M nationwide in Q1, according to a Colliers report. 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: 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. Here's the Best Western Plus Chelsea Inn in Coquitlam, one of three hotels in B.C. that sold in Q1—this one for $5M. “There is a broad range of product and the market is flush with capital looking for quality product,” Robin tells us.