TORONTO — Hotel transaction volume is significantly down in the second quarter, compared to the same period last year, according to CBRE’s latest report, which shows $170 million in transaction volume.
Year-to-date transaction volume is approximately $374 million (excluding the sale of the Fairmont Empress in Victoria, B.C.), representing less than half of the volume reported at the same time last year. There were 20 fewer deals this quarter. National per-room pricing was also down, at $67,000 compared to $92,000 in the first half of 2013.
Central Canada led the charge in transaction volume in the first six months of 2014, with 51 per cent of the national total and $189 million in volume. Only one hotel sold in Eastern Canada, with the balance of transactions occurring in Western Canada.
According to Smith Travel Research, national hotel occupancy rose to 61.7 per cent in Q2, up from 60 per cent for the same time period in 2013, while room demand grew by 3.3 per cent.