Canadian Hotel Transaction Trends

Colliers International Hotels Q2 2016 INNvestment Canada (PDF Download)

2016 on-track for record transaction volume

Cover from Colliers International Hotels Investment Canada Report

Sales momentum remains strong in 2016 with transaction volume of over $717 million through the rst half of the year, tracking 31% above the same period 2015 when strategic

acquisitions are excluded1. With the pending privatization of InnVest REIT along with other signi cant transactions expected to close in the second half of the year, 2016 is pacing to rank as one of the highest transaction volumes on record.

Transaction activity in energy linked provinces (AB/SK/NF) has
been muted year-to-date, although the energy markets are likely nearing a bottom after some 18 months of declines in commodity prices. Notwithstanding operational pressure in some markets, investor appetite for value-add deals remains high although distressed acquisitions are not expected to materialize in the near term. 

TRANSACTION HIGHLIGHTS

  • Aggregate transaction volume reached approximately $717 million through the end of Q.2 with 61 reported trades.

  • Hotel pricing averaged $99,300 per key, a 29% increase year-over-year when strategic trades are excluded1.

  • Limited service assets piqued investor interest with trading more than doubling year-over-year to $199 million (28% of volume).

  • Full-service assets remained the most dominant asset class by volume (43% of volume or $306 million), underpinned by large deals in Toronto, Ottawa, Niagara Falls, Victoria and Vancouver. 

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