THOMPSON-OKANAGAN, B.C. — Investor interest to buy hotels in B.C. has surged, primarily in the Thompson-Okanagan region.
Colliers International data has revealed 39 B.C. hotel real estate transactions valued at more than $1 million in 2021, which is the highest number of those deals in at least a decade. Buyers for those transactions in 2021 have spent roughly $453 million, which was the second-highest total in the past decade.
The largest transaction in the Thompson-Okanagan last year saw the Comfort Inn in Kamloops sell for $10.9 million to Prestige Hotels and Resorts. Hotels also changed hands in Penticton, Osoyoos, Merritt and Summerland, B.C.
Additionally, B.C. hotel conversions to housing were particularly active in 2021. In Kamloops, the government purchased the 40-room Fortune Motel for $3.6 million, with plans to convert it to a supportive housing facility. In Vancouver, the Crown corporation spent $63.8 million for the Patricia Hotel.
Finally, in terms of re-development, Capital (Canada) Trading Co. sold its 1954-built City Centre Motor Hotel in Vancouver to Nicola Wealth. Real-estate watchers expect the company to re-develop the site with condominiums.
Meanwhile, other developers are building new hotels. In Kelowna, Westcorp is moving ahead with its downtown 33-storey hotel condo tower. Penticton will also see a hotel near the Trade and Convention Centre. Onni developed a 40-storey tower in Vancouver that boasts a 110-suite extended-stay hotel, Level Vancouver Downtown-Howe, which opened in February. Onni is also looking to build a new hotel next to the future Great Northern Way-Emily Carr station along the Broadway Subway, but is awaiting clarity from the city.