By Amy Bostock
TORONTO — At this year’s Canadian Hotel Investment Conference (CHIC), held last week at the Hilton Toronto, Jessi Carrier of Colliers Hotels and Nicole Nguyen of CBRE Hotels shared key insights into the state of Canada’s hotel sector. While the broader economy may be slowing, they said optimism remains high across much of the country’s hospitality landscape.
“Occupancy has a strong foothold in the Canadian marketplace today,” said Nguyen, forecasting that 2025 will be a year of moderation with limited room for occupancy growth and slower ADR momentum. She noted that while RevPAR growth was 4.5 per cent in 2024, 2025 will likely bring more muted gains, with supply returning to pre-COVID levels in key markets.
Regionally, Atlantic Canada saw the softest performance, with St. John’s hit by declining refugee-related demand, and Halifax challenged by new supply. Conversely, strong transaction activity was noted. “We’re still seeing over $150,000 per door on average,” said Carrier, highlighting recent trades in Dartmouth and the Maritimes that signal investor confidence.
In central Canada, transaction values are climbing. “We finally have momentum,” said Carrier, pointing to deals in Ottawa, Huntsville, and Montreal showing consistent $200,000-plus per key pricing. Meanwhile, events such as Taylor Swift’s concerts significantly boosted demand in Vancouver and Toronto, although such one-time surges won’t repeat in 2025.
Nguyen also noted that Quebec City and Montreal are expected to perform steadily, bolstered by European and domestic tourism. However, Ottawa may see weaker RevPAR due to fewer sitting days in Parliament.
Across the board, strong buyer appetite, new supply, and localized demand trends are shaping an evolving investment landscape. As Carrier summarized, “There is capital ready to deploy — now it’s about where that money can find opportunity.”
CEO Panel
In one of the morning sessions, three Canadian hotel CEOs explored how they’re leading through a “dynamic,” “turbulent,” and “choppy” environment, with operational and capital pressures defining the landscape.
Moderated by Tyler MacDonald of Oxford Properties, the panel featured Shazma Charania (Z&S Holdings), Mark Laport (Concord Hospitality), and Sukhdev Toor (Manga Hotel Group). The conversation opened with a frank assessment of the current climate. “We need to buckle up,” said Charania, noting the layers of uncertainty from interest rates to geopolitics. Laport added, “There’s a lot of noise, but with that comes opportunity.”
Cross-border dynamics were a focal point. Toor emphasized the strength of domestic travel, citing a rise in inter-provincial movement. “People will travel from Newfoundland to Victoria,” he said. Charania added, “We have to remain the warm and friendly Canadians we are,” referencing a 38-per-cent rise in domestic travel intent.
On growth, all three panellists are forging ahead. Laport noted Concord has eight hotels under construction, while Toor is building strategically in high-barrier markets. Charania, operating within a family enterprise, is exploring partnerships to balance risk.
Operationally, CEOs are doubling down on basics — sales, process optimization, and contingency planning. “Sales, sales, sales,” Charania stressed, while Laport shared Concord’s revenue contingency strategies in case of downturns.
Looking ahead, all three leaders remain optimistic. “Never let a good downturn go to waste,” said Charania.
Laport echoed the sentiment: “Fantastic time to be in the business — you just have to be careful and go after it.”
Hotel Development Trends
A trio of hotel development leaders, including Scott Duff, VP Development, Canada at IHG; Aaron Laurie, area vice-president, Lodging Development, Marriott International; and Scott Richer, vice-president, Development and Owner Relations, Hyatt Hotels Corporation gathered for a candid discussion on the challenges and opportunities shaping today’s hotel projects. Moderated by Sylvia Occhiuzzi of Beechwood Real Estate Advisors, the session tackled whether to build new, convert, or adaptively reuse — and how investors can make the right strategic calls.
All three panellists offered a practical breakdown of the current landscape. “It starts with the golden rule,” said Duff. “Will it be worth more the day it opens than what it cost to get there?” Laurie added that Canada has long leaned toward conversions due to high land, material, and development costs. “In some markets, development charges alone can range from $1 million to $3 million, which can make or break a deal.”
Still, all panellists agreed that new builds remain important, especially in underserved or growing secondary and tertiary markets. Rice emphasized the ROI potential in these regions, noting, “They may not be sexy, but they’ve made a lot of investors in Canada a lot of money.”
Challenges such as tariffs, procurement delays, and permitting red tape persist. Yet Duff stressed that “preparation, clarity, and strong teams” are key to success. Laurie pointed out that exploring “Canadian alternatives” for FF&E can help mitigate cost pressures, while Rice shared that IHG has quadrupled its procurement team in Canada to better support developers.
Despite headwinds, the tone was one of cautious optimism. “There’s still an enormous amount of activity and opportunity,” said Duff. “It’s separating the organized from the disorganized.”
In-House versus Third-Party Management
A panel moderated by Tony Cohen, president of Crescent Hotels & Resorts Canada and CEO of Global Edge Investments, tackled the ongoing debate about whether hotel owners should manage assets in-house or engage third-party operators.
The session brought together three leaders — Philippe Gadbois (Atlific Hotels), Anil Taneja (Palm Holdings), and Perry Vashee (Opal Hospitality) — to explore operational models shaped by growth, control, and efficiency.
Each panellist offered a unique perspective. Gadbois described Atlific as a “third-party operator, accidentally or strategically,” while Taneja emphasized a family-driven, real estate-first approach. Vashee noted that Opal Hospitality has evolved from an owner-operator to a hand-holding third-party manager for midscale owners. “We’re more suited to newer owners,” he said.
On third-party pros, Cohen referenced ChatGPT’s summary — expertise, operational efficiency, networks, risk mitigation, and growth focus. Gadbois added, “People want to work for companies like ours… that promise them a career,” while Vashee pointed to the post-COVID talent pool as a critical advantage.
Fees and control, often viewed as cons, were re-framed by Taneja: “I’d rather pay five per cent on a higher revenue base than three per cent on a lower base.”
Vashee emphasized alignment over discounts: “We’re very selective… ensuring our vision ties in with the owner’s.”
The panel addressed brand complexities, with Gadbois expressing concern about saturation. “Today’s great brand for that asset might be tomorrow’s disaster.” Taneja was pragmatic, stating “We can’t live with them, can’t live without them,” citing cap rate and financing benefits.
Ultimately, the panel agreed alignment, transparency, and accountability are vital — regardless of the model. As Gadbois concluded, “If you can’t convince owners that the perceived conflict isn’t real, you’ll lose that business.”
During the conference, CHIC’s annual Lifetime Achievement Award was presented to Ray Gupta, Chairman, CEO and founder of Sunray Group.
