TORONTO — According to Colliers International Hotels Q3 2016 INNvestment Canada report, record-setting sales momentum continued through the third quarter of 2016 with year-to-date hotel transaction volume of $3.86 billion.
A surge of closed transactions in Q3 raised year-to-date 2016 Canadian hotel-transaction volume to $3.86 billion, making the quarter the highest quarterly volume for hotel real estate on record — totalling $3.1 billion in asset value.
Foreign capital has comprised the majority of year-to-date volume, with cross-border groups injecting approximately $2.66 billion into the market (69 per cent of the year-to-date total). The market was also fluid in the $5 to $25 million asset-value range, with active trading between private investors and hotel investment companies.
Highlights for the quarter included the sale of InnVest REIT to Bluesky Hotels and Resorts, a privately held Canadian company backed by Hong Kong capital, for $2.1 billion — representing more than 14,500 rooms across Canada; and the $225-million sale of the Four Seasons Hotel Toronto, which set a new price-per-room sales record in Canada at $868,700 per key.