TORONTO — According to Colliers International’s latest Hotel INNvestment Canada Report, a steady sales pace continued through Q3 2017 with approximately $473 million in closed volume, raising the year-to-date national total to over $2.6 billion.
Overall pricing remained strong in the third quarter, with average price-per-key growing 27 per cent year-over-year to $161,200. When excluding M&A activity and other strategic transactions, average per-key pricing for traditional hotel sales continued to be robust at $125,500, pacing 31 per cent ahead of the same period in 2016.
Alberta saw nearly $100 million of sales activity in Q3 compared with less than $30 million in the first half of the year. Atlantic Canada also saw stronger investment interest this quarter with five hotel transactions in New Brunswick, Nova Scotia and Prince Edward Island exceeding $42 million — compared with approximately $30 million (seven trades) in full-year 2016.
The report sites private investors and hotel investment companies as the most dominant buyers in the quarter. Public and institutional groups also remained active on the sell-side, including InnVest Hotels, Lakeview Hotel Investment Corp., Temple Hotels Inc., IMP Group and Northview Apartment REIT.
Key transactions from Q3 2017 include the sale of the Rosewood Hotel Georgia to Vancouver-based Pacific Reach Properties ($145 million/$929,500 per key), Mohari Canada Inc.’s acquisition of Thompson Toronto Hotel ($77 million/$733,300 per key) and the sale of Westcorp’s three Edmonton boutique hotels to DSDL Canada Ltd. ($65.6 million/($176,800 per key).
The complete report is available for download here.