TORONTO — Solid economic and financing conditions, an all-time high in tourist arrivals and favourable hotel supply/demand dynamics supported near-record transaction volume in 2017 of $3.5 billion, according to Colliers International’s 2018 Canadian Hotel Investment Report. It showed Canada continued to be a natural destination for global capital, with foreign buyers investing more than $1.35 billion into Canadian lodging real estate.
The report highlights include:
• A growing buyer universe and heightened competition for hotel assets drove valuation growth across all segments, with a new average-price-per-room record of $161,400
• Ontario remained the top province for traditional hotel investment, with 53 transactions exceeding $1.2 billion in value
• New-room-night-supply growth (net of closures) in Canada’s 17 major markets grew by 0.4 per cent in 2017, with an increase of 1.8 per cent expected in 2018, led by downtown Montreal, Halifax, Ottawa and Calgary
• The value of Canadian hotel real estate, based on an aggregate of 17 major markets, increased by approximately 13.2 per cent in 2017 — the strongest valuation growth on record since Colliers began tracking in 1992