SEATTLE, Wash. — Following the highest Q1 volume in Canadian history, the second quarter saw activity with total year-to-date June transaction volume of $2.14 billion, according to Colliers International’s Hotel INNvestment Canada Report Q2 2017 — nearly triple the activity seen in the first half of 2016.
Asian capital remains a prominent theme in the market with foreign buyers investing more than $1.2 billion into Canadian lodging real estate, including the sale of the Holiday Inn Montreal-Longueil and Ontario’s historic Briars Resort, which closed in the second quarter.
Strategic transactions continue to drive material growth in the market, namely the sale of the bcIMC/Silverbirch portfolio and the former Trump International Hotel & Tower Toronto, which together accounted for nearly 60 per cent of year-to-date volume. When excluding strategic deals, the traditional market is still on-track to achieve a new record in 2017 — pacing 25-per-cent ahead of last year to $893 million with corresponding price-per-key metrics growing 41 per cent year-over-year to $140,000.
Eastern Canada led the country for traditional sales activity, with approximately $735 million in closed volume, advancing 55 per cent above the same period in 2016. Ontario accounted for 74 per cent of traditional sales volume, elevated by several significant transactions in the Greater Toronto Area, Ottawa, and London.
Atlantic Canada saw renewed interest from investors with the sale of the Residence Inn Halifax Downtown setting a new price per room record for the region.
Transaction activity in Western Canada remained muted with limited investment opportunities coming to market as owners employed a hold strategy amidst fluctuating energy markets.
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