SEATTLE, Wash. — According to the 2017 Canadian Hotel Investment Report released by Colliers International, investment in the Canadian hotel real-estate market finished with $4.1 billion in transaction volume in 2016 — the second-highest on record and almost 70 per cent higher on a year-over-year basis. The year also set a new high for traditional price-per-room metrics ($99,000) and cross-border investments.
The report highlights many firsts for the industry in 2016, including the highest volume in the current cycle and a record for investments made by cross-border investors. “We expect continued robust activity that should exceed $3 billion in overall transaction volume in 2017, with a $1 billion [plus] portfolio already closed in Q1,” the report states. “The Canadian hotel industry is firing on all cylinders, having gained strength in each passing year of the current cycle. Several factors beyond regular buyer–seller–lender dynamics have come into play that have dramatically enhanced the appeal of the country’s lodging sector and provides promise for continued activity in the coming years.”
Four emerging themes have enhanced liquidity, including shifts in currency markets, capital flight from primarily Mainland China, a search for risk-adjusted returns by both domestic and internationally focused investors and strong operating performance witnessed in most markets across the country.
Download the full 2017 Canadian Hotel Investment Report here.