TORONTO — The Canadian lodging investment sector may have bottomed out in 2009, but it bounced back in 2010, according to a CB Richard Ellis (CBRE) report.
“Well over $1 billion of hotel assets are now, or will shortly be, on the market and are likely to be snatched up by high net worth, private investors, private equity and institutional buyers,” reports Bill Stone, executive vice-president of the Los Angeles-based CBRE Hotels.
Estimated hotel investment transactions soared 70 per cent in 2010 year-over-year to approximately $700 million and per-room pricing increased 24 per cent from an average of $69,000 to $86,000, due to more aggressive purchaser underwriting as well as the class of assets being brought to market.
“Unlike recent years in which private domestic buyers clearly dominated the investment landscape, there have been an extraordinary number of international investors ready to make Canadian hotel acquisitions,” Stone explains. “Today, we are seeing a noticeable spike in interest by American investors as well as offshore groups, largely from Singapore, Malaysia and China.”
For a detailed summary of the report, or to receive a copy, click here.