COLLIERS HOTELS collierscanada.com/hotels

2020 CANADIAN HOTEL INVESTMENT REPORT
INTRODUCTION
This annual report provides an analysis of the investment fundamentals that drove the Canadian lodging industry in 2019, providing data and intelligence on a variety of market measures. Over the years, we have evolved its content to provide a “special feature” component that offers a retrospective review of cycle themes, timelines, and long-view analysis on specific topics. For your reference, we have provided links to these past-year reports opposite. Our 2020 Canadian Hotel Investment Report begins with our newest special feature: Megatrends and the Road Ahead, which is presented on the following spread and reflects on some of the critical trends from the past 10 years as well as predictions for the decade ahead. The balance of the document includes our review of the 2019 transaction market and listing of transactions that took place across the country. As we enter 2020, the hotel investment market retracted in response to the global economic catastrophe caused by COVID-19. These are extremely challenging times with local and international governments implementing strategies to help business owners weather this storm and eventually stimulate the economy once social distancing policies are lifted.
When analyzing past cycles, the hotel industry has generally come back stronger after each downturn. Generally, the Canadian hotel real estate sector enters this crisis in better shape than previous downturns given improved capitalization structures, stronger management and controlled supply levels in most markets. As with past downturns, our industry will recover and prosper once again. As always, we are here with you and for you.
Colliers Hotels is pleased to present the 25th installment of the Canadian Hotel Investment Report.
2019: Resilience in the Canadian Lodging Industry
2018: Evolution of the Hotel Industry (2nd Edition)
HOTEL
2016
colliershotels.com
2016: The Next Move – A Collection of Industry Views
2015 Canadian Hotel Investment Report Colliers International Hotels
colliershotels.com
2014 Canadian Hotel Investment Report
Colliers International Hotels
www.colliershotels.com
www.colliershotels.com
2013: Real Estate Renaissance – Progressing Through a more Balanced Cycle
2012: Historical Perspective of the Hotel Debt Market in Canada
2011: Canadian Hotel Real Estate Industry Ripe for Foreign Investment
2010: Global Headlines & Signposts – Year in Review
2 0 0 9 C a n a d i a n H o t e l I n v e s t m e n t R e p o r t
2009: Canadian Lodging Real Estate Cycle
2008 Canadian Hotel Investment Report
2008: Evolution of the Hotel Industry (1st Edition)
Click below to download any of our prior reports.
4 COLLIERS HOTELS COLLIERS HOTELS 5
Foreign Investment A total of 32% of hotel transaction volume occurring in the last decade resulted in capital inflow into Canada versus just 8% in the preceding 10-year period. Canada is a desirable destination for global capital, and sizable investment opportunities are proving to be enticing to foreign buyers. An increase in foreign investment is not only a result of the low Canadian dollar but also due to Canada’s reputation as a safe and stable investment environment and strong economic backdrop. These elements, coupled with strength in the lodging operating environment, have attracted capital to Canada with investors looking for diversification.
Legitimization of the Sector The Canadian lodging industry has evolved into a highly sought-after asset class and, as illustrated by 10-year transaction trends totaling nearly $20 billion, has been a destination for long-term capital allocators. Over the past decade ending in 2019, a balanced mix of buyer profiles was the catalyst for increased activity with 64% of transaction volume from single asset acquisitions and 68% driven by domestic capital.
Resilient Debt Market Conditions The emergence of new lenders in the past decade has brought significant liquidity to the Canadian lodging industry, supported by strong sponsorship and disciplined underwriting. The expansion in debt providers has been met by record-low lending rates, not surprising given the trend in overall government bond yields, which more than halved by the end of the decade.
Transformative Trends That Defined the Last Decade Roadmap to 2030
Megatrends and the Road Ahead With the start of a new decade, this year’s analysis includes a recap of “megatrends” that shaped the lodging industry over the last decade and some of the more significant investment themes poised to be relevant in the years to come.
Volume ‘00-’09 ‘10-19 % increase
Traditional $5.3B $13.2B 147%
Strategic $7.9B $6.55B -17%
Total $13.2B $19.75B 50%
Previous vs Current Decade
REAL ESTATE COMPANY
(19% of total)
HOTEL INVESTMENT COMPANY
(22% of total)
Volume in the 2010s was 50% higher than the previous decade (2000-2009)
BREAKDOWN BY KEY COMPONENT
$4.3B
$1.9B
$19.75B Investment Discipline The industry is progressing in sophistication, and we expect investors will continue to deploy resources and internal systems to drive asset management strategies. Larger investors are effective at optimizing investment levers to maximize return- on-investment, and as we see increased consolidation and growth in portfolios as a catalyst for continued evolution.
We have witnessed rational buying of assets with buyers underwriting transactions using solid investment decision-making tools. Expect a continuation of prudent discipline in investing going forward.
SPECIAL FEATURE
1
2
3
The Search for Core Real Estate As we saw in the last decade, the pressure to deploy capital in a low yield environment caused investors to increase their allocation to real assets. Investing in hotel real estate for the long term can provide strong cash flow and great potential for future appreciation, as long as investors are also concentrating on managing risks during hard times. With lodging properties generally yielding overall higher returns than other asset classes, we anticipate an expansion of investors seeking well-located lodging assets in high barrier to entry markets.
There is a spectrum of domestic investors sitting on the sidelines looking for yield, but also looking for turnaround properties with a strategy to increase equity. In addition, global capital aided by enhanced buying power with a low Canadian dollar relative to major world currencies, will focus on prized portfolios and trophy assets. Depending on the buyer and risk profile of the offering, there will continue to be a healthy mix of buyers who are looking to take advantage of the current cost of capital and believe in the sector’s ability to generally provide overall higher returns than other real estate classes in the long run.
Industry Consolidation As a result of greater balanced investment in the sector, the industry has transformed into a core-hold for a variety of capital sources (private investors and hotel investment companies) and is also of growing importance to the likes of pension funds and real estate companies that leverage hospitality into their existing portfolio of diversified real assets.
Expect portfolio-building to continue with M&A and portfolio buyouts, as well as strategic single-asset acquisitions across the country with the primary acquirers motivated by generating long-term wealth and searching for yield.
We anticipate foreign capital to be active going forward but perhaps not as concentrated as what we saw in the previous decade. In the background there will likely be additional consolidation of international hotel brands, providing new opportunities for investors.
*Strategic transactions typically involve at least two of the following conditions: 1) a pricing premium is paid; 2) the asset is located in a high barrier to entry market or within a geographic hub of an owner’s principal business; or 3) the opportunity allows for an extension of the company’s brand or portfolio. Note: Trends are based on hotel transactions of at least $1 million.
Source: Colliers Hotels
20-YEAR HOTEL INVESTMENT TRENDS
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Total Transaction Volume
$ Volume (M) $443 $642 $540 $469 $360 $1,706 $2,950 $4,580 $1,072 $414
# of Hotels 49 42 49 51 50 104 141 168 92 74
$/Room $80,900 $111,300 $81,800 $62,200 $67,000 $108,800 $162,000 $154,200 $116,500 $65,500
Traditional Volume (Excluding Strategic Sales)
$ Volume (M) $301 $262 $185 $384 $343 $688 $1,092 $986 $571 $414
# of Hotels 48 39 43 49 49 91 131 100 81 74
$/Room $60,600 $65,500 $49,300 $61,300 $63,900 $70,200 $77,000 $97,000 $84,300 $65,500
Strategic Volume
$ Volume (M) $142 $380 $355 $85 $17 $1,018 $1,858 $3,594 $501 $0
# of Hotels 1 3 6 2 1 13 10 68 11 0
$/Room $319,000 $214,900 $173,700 $92,600 $112,000 $188,000 $464,700 $179,500 $185,500 n/a
*Strategic transactions typically involve at least two of the following conditions: 1) a pricing premium is paid; 2) the asset is located in a high barrier to entry market or within a geographic hub of an owner’s principal business; or 3) the opportunity allows for an extension of the company’s brand or portfolio. Note: Trends are based on hotel transactions of at least $1 million.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Transaction Volume
$ Volume (M) $717 $1,107 $1,178 $2,023 $1,455 $2,460 $4,081 $3,469 $1,510 $1,756
# of Hotels 86 99 116 115 127 147 242 160 131 129
$/Room $83,000 $108,000 $83,600 $133,000 $93,200 $114,300 $133,600 $161,400 $106,700 $130,100
Traditional Volume (Excluding Strategic Sales)
$ Volume (M) $498 $786 $1,178 $1,138 $1,210 $1,634 $1,547 $1,994 $1,466 $1,756
# of Hotels 82 96 116 109 125 142 142 131 130 129
$/Room $69,000 $87,000 $83,600 $87,500 $82,200 $84,600 $99,000 $138,200 $103,800 $130,100
Strategic Volume
$ Volume (M) $219 $321 $0 $885 $245 $826 $2,534 $1,475 $44 $0
# Hotels 4 3 0 6 2 5 100 29 1 0
$/Room $171,000 $220,000 n/a $263,900 $247,500 $242,800 $868,700 $730,100 $961,000 n/a
Strategic Volume Strategic VolumeTraditional Volume Traditional Volume$/Room $/Room
Strategic portion primarily represented by the sale of the Westin Canadian Hotel Portfolio.
Fairmont Canadian Resort Portfolio sold for $1.7B (58% of the year’s volume).
CHIP REIT & Legacy REIT both taken private contributing to $3.2B in transaction volume for the year (70% of the year’s total volume).
$3,500$3,500
$4,500$4,500
$3,000$3,000
$4,000$4,000
$0$0
$500$500
$1,000$1,000
$1,500$1,500
$2,000$2,000
$2,500$2,500 Westin Canadian Hotel Portfolio re-sold for $765M (40% of the year’s total volume).
Fortis Properties hotel portfolio sold for $365M. Ivanhoe Cambridge divests historic Fairmont Royal York and Fairmont Vancouver Hotels.
bcIMC hotel portfolio and management business sold for $1.1 billion to foreign buyer.
InnVest REIT taken private by foreign buyer in $2.1 billion transaction.
$140,000
$180,000
$120,000
$160,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$/ Ro
om
2019 ended as the 2nd highest year on record for traditional transaction volume.
Buyer Confidence Drives Activity • Private investors represented the largest number of deals
with 78 transactions totaling $493 million in volume. This well-capitalized investment group was the most active buyer of limited and focused service properties with an average deal size of $6.4 million.
• Real estate companies (REC) took advantage of increasingly rare major market investment opportunities and acquired 11 hotels for $525 million, the most significant transaction volume by RECs in the current cycle (2010 - 2019).
• Hotel investment companies (HIC) remained a core component of investment activity, securing 28 properties for $445 million. Targeting yield and geographic expansion, HICs were active on portfolio and single asset transactions in both major and secondary markets.
• Buy-side demand from public and institutional groups was moderate in the latter half of the current cycle. However, 2019 saw activity nearly triple year-over-year to $291 million (17% of volume) with major acquisitions by Knightstone Capital Management as well as U.S.-based KSL Capital Partners and Viad Corp (NYSE: VVI).
Sellers Shed Non-Core Assets • Institutional and public companies were collectively the largest
sellers by volume with the sale of 30 properties for $720 million, encompassing notable transactions such as the Westin Canadian Portfolio and Sheraton Gateway Hotel in Toronto International Airport.
• Holloway Lodging Corporation (TSX: HLC) was the largest seller by properties sold, divesting 13 hotels in Ontario and Atlantic Canada for $79 million through five portfolio sales and two single asset transactions.
• Private investors remained a stable component of sell-side activity, representing just over one third of deal volume ($592 million) and 57% of total hotels sold with an average sale price of $8.1 million.
• HICs ranked as the second largest seller by properties sold, divesting 23 hotels for $343 million with notable sales including the Jasper Resort Portfolio, Canadian Select Hotel Portfolio and Niagara Falls Focused Service Portfolio.
Hotel Supply Growth Colliers estimates new room night supply growth (net of closures) in Canada’s 17 major markets increased by a significant 2.6% in 2019, well above the 10-year annual average of 1.2%. Colliers forecasts the pace of new room openings will moderate to 1.6% in 2020. Our forecast does not include temporary hotel closures as a result of COVID-19.
10.0%
8.0%
-4.0%
28% | $493M
25% | $445M $343M | 20%Hotel Investment Company Hotel Investment Company
Real Estate Company Real Estate Company
$592M | 34%Private Investor Private Investor
Buyer vs. Seller Canada’s hotel real estate market maintained positive momentum in 2019 with transaction volume of over $1.75 billion, registering as the sixth strongest year on record since Colliers began tracking hotel transactions in 1985. Confidence in the hotel asset class and Canadian market was evidenced by active participation of a diverse investor pool and growing list of lenders from coast to coast. Interestingly, there were no strategic hotel sales in 2019 and, paired with a broad cross-section of buyer and seller groups, this was indicative of a balanced market.
Reflecting the rapid escalation of the COVID-19 pandemic, the Canadian lodging sector enters 2020 in a starkly different operating environment, however; the sector remains well-positioned for growth when global markets shift from decline to recovery.
2019 Market Analysis by Segment Volume ($M) % of Volume # of Hotels Price per Room Avg. Deal Size ($M) Avg. # of Rooms Avg. Cap Rate (%)
Full Service $932 53% 22 $192,500 $42.4 223 6.8%
Focused Service $232 13% 14 $144,900 $16.6 114 7.0%
Limited Service $592 34% 93 $75,200 $6.4 69 8.5%
Total $1,756 100% 129 $130,100 $11.5 100 7.1%
Full Service Full service assets led transaction volume in 2019; average deal size increased 32% year-over-year.
Focused Service Focused service investment opportunities were limited; segment volume decreased 40% from 2018.
Limited Service More than 70% of hotels sold were limited service properties, but represented only 34% of total volume.
Strong Pricing: Total price per room averaged $130,100, pacing 22% above 2018 levels ($106,700) with all segments trending positively.
Fluid Mid-Market Trading: Of the 129 trades, nearly 75% of hotels sold for less than $10 million.
Increased Foreign Investment: Foreign buyers from the U.S., Asia and Middle East acquired 11 assets for approximately $260 million (15% of volume).
Full Service Rebound: Full-service deal volume increased 71% from 2018.
Lively Portfolio Activity: Ten portfolio transactions encompassing
32 hotels sold nationally for $655 million (37% of volume).
Rise in Large Transactions: Nine hotels sold for over $50 million totaling $809 million (46% of volume).
+$1.7B VOLUME
129 HOTELS
Limited Distressed Activity: Seven distressed transactions accounted for 4% of total volume.
2019 Transaction Highlights
Regional Analysis • In-line with recent trends, just over 60% of
national transaction volume took place in the eastern half of the country (east of Manitoba). While western Canada has historically led the country in average price per room, metrics between the two sides of the country were fairly balanced in 2019.
• Ontario remained the most active province for hotel investment with 42 transactions totaling $708 million in volume (40% of total). Price per room metrics continued to see upwards pressure as investor demand outstriped available investment opportunities.
• Alberta emerged as a bright spot in 2019, ranking as the second most active market with hotel transactions up 37% year-over-year and investment volume nearly tripling to $456 million, demonstrating investors’ long term positive outlook for the province.
• The Atlantic region (east of Quebec) also piqued investor interest, particularly from out-of-province investors with 18 transactions totaling $111 million in volume, almost doubling from 2018.
Greater Halifax Transactions (2) $12M
Quebec City Transactions (7) $57M
16%
17%
31%
175%
11%
45%
576%
469%
31%
-
Note: Trends are based on hotel transactions of at least $1 million. Source: Colliers Hotels
2019 Volume By Region
British Columbia 19 1,349 $190 11% $101,100
Manitoba 4 148 $24 1% $144,700
Saskatchewan 2 229 $7 0% $30,500
EAST 78 8,007 $1,078 61% $132,100
Ontario 42 4,511 $708 40% $150,300
Quebec 18 1,853 $259 15% $144,000
Nova Scotia 11 951 $69 4% $81,600
New Brunswick 5 441 $30 2% $68,100
Newfoundland 2 251 n/a n/a n/a
TOTAL 129 12,884 $1,756 100% $130,100
Major Region Transaction Volume Heat Map
2019 Top Transactions
Top Portfolio Transactions
Atlantic Canada Limited Service Portfolio (1) Holloway Lodging Private Investors 246
Canadian Select Hotel Portfolio (2) Westmont Sponsored Partnership Private Investment Group 738
Jasper Resort Portfolio (60%) (3) Mountain Park Lodges Viad Corp. (60%) 735
Niagara Falls Focused Service Portfolio (4) Fallsview Group Sunray Group 300
Westin Canadian Portfolio (5) Starwood Capital Group Barney River Investments 1,433
Top Single Asset Transactions
Downtown Montreal Hotel Private Investor Sageblan Investments 353
Hockley Valley Resort and Adamo Estate Winery (6) Private Investor Sunray Group 104
Pacific Gateway Hotel Vancouver Airport (58%) (7) Van-Air Holdings PHI Hotel Group (58%) 382
Residence Inn by Marriott Montreal Downtown Jesta Group Moongate Real Estate Inc. 210
Sheraton Gateway Hotel Toronto International Airport (8) Marriott International Knightstone Capital 474
1. Three property Atlantic Canada portfolio acquired for $18.2 million.
2. Five property national portfolio. Sale details confidential.
3. 60% interest in a seven property portfolio in Jasper acquired for $99 million. Vendor retaining remaining interest with a joint venture
formed. Sale included a separate undeveloped parcel. Price per room not applicable.
4. Two property portfolio in Niagara Falls acquired for $35.4 million.
5. Three property portfolio in Calgary, Edmonton and Ottawa. Sale details confidential.
6. Sale included the resort, golf course, ski hill and winery. Sale details confidential.
7. 58% interest transferred. Vendor retaining remaining interest with a joint venture formed. Sale details confidential.
8. Leasehold interest.
Full Service Focused Service Limited Service
12%
11%
5%
Capitalization Rates Average national capitalization (cap) rates have hovered in the mid 7% range for the past five years. Reflecting the competitive financing environment and strong investor demand, lodging transactions reporting cap rates averaged 7.1% in 2019 versus 7.4% in 2018.
Name City Prov. Rms. Date Price Price/Room Cap Rate
Rockwood Motor Inn (11) Stonewall MB 12 Jan $3,690,000 n/a n/a
Viking Inn (11) Gimli MB 20 Mar $2,700,000 n/a n/a
Howard Johnson Express Inn-Winnipeg West (11) Winnipeg MB 44 May $7,500,000 n/a n/a
Canadiana Motor Inn Winnipeg MB 72 Sep $10,420,000 $144,700 n/a
Manitoba - 4 Trades 148 $24M Days Inn & Suites Moncton (12) Moncton NB 152 Mar $9,000,000 $59,200 9.3%
Travelodge Suites Moncton (12) Moncton NB 76 Mar $5,000,000 $65,800 9.2%
Comfort Inn Bathurst Bathurst NB 76 Jun $3,900,000 $51,300 7.7%
Rodd Miramichi River (13) Miramichi NB 79 Sep n/a n/a n/a
Travelodge Suites by Wyndham Saint John (14) Saint John NB 58 Sep $4,200,000 $72,400 10.3%
New Brunswick - 5 Trades 441 $30M Greenwood Inn & Suites Corner Brook (5) Corner Brook NL 102 Dec n/a n/a n/a
Mount Peyton Resort & Conference Centre (5) Grand Falls-Windsor NL 149 Dec n/a n/a n/a
Newfoundland and Labrador - 2 Trades 251 N/A Travelodge Suites Halifax Dartmouth Dartmouth NS 75 Jan $6,900,000 $92,000 9.5%
Best Western Truro - Glengarry Truro NS 92 Mar $5,400,000 $58,700 n/a
Super 8 Windsor NS Windsor NS 66 Mar $5,300,000 $80,300 11.6%
Comfort Inn Halifax Halifax NS 63 Jun $5,200,000 $82,500 10.0%
Super 8 Truro (15)(16) Truro NS 50 Aug $3,000,000 $60,000 10.9%
Travelodge Hotel Sydney (15) Sydney NS 117 Aug $5,100,000 $43,600 7.3%
Holiday Inn Express Stellarton-New Glasgow (14) Stellarton NS 125 Sep $12,500,000 $100,000 10.3%
Travelodge Suites by Wyndham New Glasgow (14) New Glasgow NS 63 Sep $1,450,000 $23,000 10.3%
Maritime Inn Antigonish Antigonish NS 32 Sep $3,650,000 $114,100 10.4%
Digby Pines Golf Resort and Spa Digby NS 116 Dec $1,000,000 n/a n/a
Holiday Inn Sydney-Waterfront (5) Sydney NS 152 Dec n/a n/a n/a
Nova Scotia - 11 Trades 951 $69M Advantage Inn Motel Niagara Falls ON 35 Jan $2,070,000 $59,100 n/a
Arlington Hotel Paris ON 23 Jan $1,900,000 $82,600 n/a
Days Inn Sioux Lookout (1)(17) Sioux Lookout ON 60 Jan $5,228,600 n/a n/a
Headwaters Lodge Caledon ON 15 Jan $1,750,000 $116,700 n/a
Thriftlodge Cochrane South Cochrane ON 40 Jan $3,200,000 $80,000 n/a
Thunder Bay Inn (17) Thunder Bay ON 17 Jan $1,425,000 n/a n/a
Wiarton Willy's Inn Wiarton ON 21 Jan $1,030,000 $49,000 n/a
Travelodge Airport North Bay North Bay ON 100 Feb $8,500,000 $85,000 n/a
Festival Inn Stratford ON 179 Mar $7,700,000 $43,000 n/a
Hockley Valley Resort and Adamo Estate Winery (18) Mono ON 104 Mar n/a n/a n/a
Pine Ridge Motel Clarington ON 18 Mar $1,225,000 $68,100 n/a
Staybridge Suites London London ON 117 Mar n/a n/a n/a
Toronto Plaza Hotel (1)(19) Toronto ON 199 Mar $20,250,000 n/a n/a
Universal Inn and Suites Niagara Falls ON 90 Mar $3,800,000 $42,200 n/a
Budget Inn 2000 Hamilton ON 35 Apr $3,250,000 $92,900 n/a
Marco Polo Inn Niagara Falls ON 60 Apr $2,400,000 $40,000 n/a
Best Western Plus Walkerton East Ridge Walkerton ON 50 May $7,700,000 $154,000 n/a
Quality Inn Peterborough Peterborough ON 117 May $8,100,000 $69,200 n/a
Rodeway Inn Fallsview (20) Niagara Falls ON 61 Jun $13,650,000 n/a n/a
Super 8 Timmins (21) Timmins ON 73 Jun $6,500,000 $89,000 9.8%
Travelodge Timmins (21) Timmins ON 92 Jun $4,900,000 $53,300 9.8%
Hotel Name City Prov. Rms. Date Price Price/Room Cap Rate
Best Western Pocaterra Inn Canmore AB 83 Jan $20,000,000 $241,000 n/a
Grove Motor Inn Spruce Grove AB 47 Jan $5,000,000 $106,400 9.5%
Lakeview Inns & Suites Hinton Hinton AB 55 Jan $3,755,000 $68,300 5.7%
Best Western Airport Inn Calgary AB 76 Mar $5,750,000 $75,700 n/a
Best Western Plus Red Deer Inn & Suites Red Deer AB 92 May $8,750,000 $95,100 n/a
Best Western Wainwright Inn & Suites Wainwright AB 85 May $9,450,000 $111,200 n/a
Wingate Airdrie (1) Airdrie AB 83 May $6,500,000 $78,300 n/a
Chateau Jasper (2) Jasper AB 119 Jun
$99,000,000 n/a n/a
Pyramid Lake Resort (2) Jasper AB 62 Jun
Sawridge Inn and Conference Centre (2) Jasper AB 152 Jun
The Crimson Hotel (2) Jasper AB 99 Jun
Lakeview Signature Inn Calgary Airport Calgary AB 120 Jun $10,250,000 $85,400 n/a
Leroy's Motor Inn Strathmore AB 45 Jun $1,300,000 $28,900 n/a
The Westin Calgary (3) Calgary AB 525 Jun n/a n/a n/a
Sundowner Inn (4) Edson AB 67 Jul n/a n/a n/a
Ramada by Wyndham Edmonton West Edmonton AB 102 Aug $8,200,000 $80,400 n/a
Holiday Inn Express & Suites Edmonton North Edmonton AB 95 Sep $11,750,000 $123,700 8.0%
Best Western Plus Sherwood Park Inn & Suites Sherwood Park AB 90 Oct $11,200,000 $124,400 7.6%
Hinton Lodge Hinton AB 86 Oct $8,480,000 $98,600 10.6%
Podollan Inn & Spa Grande Prairie (1) Grande Prairie AB 168 Nov $30,750,000 $183,000 n/a
Best Western Rimstone Ridge Hotel (1) Rimbey AB 60 Dec $3,010,000 $50,200 n/a
Quality Inn Medicine Hat (5) Medicine Hat AB 121 Dec n/a n/a n/a
The Westin Edmonton (3) Edmonton AB 416 Dec n/a n/a n/a
Alberta - 26 Trades 3,151 $456M Super 8 Castlegar (6) Castlegar BC 56 Feb $5,000,000 n/a n/a
Best Western Invermere Inn Invermere BC 46 Mar $4,100,000 $89,100 n/a
Camelot Court Motel Prince George BC 69 Mar $5,185,000 $75,100 n/a
Chalet Motel Kitimat BC 48 Mar $1,313,400 $27,400 n/a
North Star Inn & Suites (4) Prince George BC 98 Mar n/a n/a n/a
Ocean Marina Hotel Port Alberni BC 42 Mar $2,450,000 $58,300 n/a
Thunderbird Motor Inn (7) Duncan BC 31 Mar $3,788,900 n/a 8.5%
Clayoquot Wilderness Resort (8) Tofino BC 20 Apr $55,206,000 n/a n/a
Coast Discovery Inn Campbell River Campbell River BC 88 Apr $12,000,000 $136,400 9.2%
Waterfront Inn Penticton BC 21 Apr $3,474,000 $165,400 n/a
Comfort Inn & Suites Kamloops Kamloops BC 87 May $9,800,000 $112,600 n/a
Harrison Village Motel Harrison Hot Springs BC 19 May $1,875,000 $98,700 n/a
Sunny Beach Motel (9) Penticton BC 22 May $2,233,000 n/a n/a
Econo Lodge City Centre Inn (4) Prince George BC 53 Jul n/a n/a n/a
Sportsman's Motel Merritt BC 29 Jul $1,345,000 $46,400 n/a
Travelodge by Wyndham Prince George Goldcap (4) Prince George BC 77 Jul n/a n/a n/a
Lakeview Inns & Suites Fort Nelson Fort Nelson BC 72 Aug $3,175,000 $44,100 n/a
Days Inn Cranbrook Cranbrook BC 89 Nov $5,175,000 $58,100 10.6%
Pacific Gateway Hotel at Vancouver Airport (10) Richmond BC 382 Dec n/a n/a n/a
British Columbia - 19 Trades 1,349 $190M
2019 TRANSACTION LIST
2020 CANADIAN HOTEL INVESTMENT REPORT 2020 CANADIAN HOTEL INVESTMENT REPORT
1. Receivership sale. 2. 60% interest in a seven property portfolio in Jasper acquired for $99 million. Vendor retaining remaining interest with a joint venture formed. Sale included a
separate undeveloped parcel. Price per room not applicable. 3. Part of three property portfolio in Calgary, Edmonton and Ottawa. Sale details confidential. 4. Sale details confidential. 5. Part of five property national portfolio. Sale details confidential. 6. Sale included a liquor store and standalone restaurant. Price per room not applicable. 7. Sale included standalone leased restaurant. Price per room not applicable. 8. Resort located on 600 acres with luxury tent accommodations. Price per room not applicable. 9. Price per room not applicable. 10. 58% interest transferred. Vendor retaining remaining interest with a joint venture formed. 11. Significant non-hotel income. Price per room not applicable. 12. Part of two property Moncton portfolio acquired for $14 million. 13. Sale included 19 retirement residence units. Sale details confidential. 14. Part of three property Atlantic Canada portfolio acquired for $18.2 million. 15. Part of two property Nova Scotia portfolio sale acquired for $8.1 million. 16. Leasehold interest. 17. Acquired for conversion to alternate use. Price per room not applicable. 18. Sale included the resort, golf course, ski hill and winery. Sale details confidential. 19. Hotel was fully leased as a refugee shelter at time of sale. Property also has excess land with development potential. Price per room not applicable. 20. Sale included excess land with development potential. 21. Part of two property portfolio in Timmins acquired for $11.4 million. 22. Part of two property portfolio in Thunder Bay acquired for $15 million. 23. Acquired for redevelopment. Price per room not applicable. 24. Part of two property portfolio in Niagara Falls acquired for $35.4 million. 25. Four property portfolio in Quebec City acquired for $9.9 million.
Note: Trends are based on hotel transactions of at least $1 million. Source: Colliers Hotels
Hotel Name City Prov. Rms. Date Price Price/Room Cap Rate
The Westin Ottawa (3)(16) Ottawa ON 492 Jun n/a n/a n/a
Holiday Inn Express Toronto-North York Toronto ON 163 Jul $29,250,000 $179,400 6.8%
Ramada by Wyndham Gananoque Provincial Inn Gananoque ON 77 Jul $4,050,000 $52,600 n/a
Airlane Hotel and Conference Centre (22) Thunder Bay ON 155 Aug $9,000,000 $58,100 n/a
Travelodge Thunder Bay (22) Thunder Bay ON 93 Aug $6,000,000 $64,500 n/a
Ambassador Hotel (23) Sudbury ON 45 Aug $4,550,000 n/a n/a
Holiday Inn Express & Suites Huntsville Huntsville ON 87 Aug $14,950,000 $171,800 9.0%
Knights Inn Toronto Scarborough (23) Toronto ON 62 Aug $5,790,000 n/a n/a
Ottawa Plaza Inn (23) Ottawa ON 65 Aug $8,500,000 n/a n/a
Quality Inn Owen Sound Owen Sound ON 79 Aug $5,600,000 $70,900 n/a
Ramada by Wyndham Niagara Falls/Fallsview (24) Niagara Falls ON 192 Aug $24,400,000 $127,100 n/a
Ramada Niagara Falls By The River (24) Niagara Falls ON 108 Aug $11,000,000 $101,900 n/a
Holiday Inn & Suites Mississauga West - Meadowvale Mississauga ON 120 Oct $24,100,000 $200,800 7.2%
Liberty Inn Clarington ON 30 Oct $2,925,000 $97,500 n/a
The Peninsula Inn & Resort Niagara Falls ON 95 Oct $10,300,000 $108,400 n/a
Fairfield Inn & Suites by Marriott Belleville Belleville ON 114 Nov $9,400,000 $82,500 5.3%
Motel 6 Niagara Falls Niagara Falls ON 132 Nov $9,950,000 $75,400 n/a
Sheraton Gateway Hotel in Toronto International Airport (16) Toronto ON 474 Nov $130,000,000 $274,300 10.3%
Super 8 Midland Midland ON 65 Nov $6,900,000 $106,200 n/a
Days Inn London (4) London ON 143 Dec n/a n/a n/a
Holiday Inn & Suites Windsor (5) Windsor ON 214 Dec n/a n/a n/a
Ontario - 42 Trades 4,511 $708M Quality Inn & Suites Victoriaville Victoriaville QC 82 Mar $6,200,000 $75,600 n/a
Comfort Inn & Suites Saint-Nicolas (4) Saint-Nicolas QC 101 May n/a n/a n/a
Quality Hotel Centre de Congrès Saint-Jean-sur-Richelieu Saint-Jean-sur-Richelieu QC 113 May $9,625,000 $85,200 n/a
Auberge de la Gare (4) Gatineau QC 42 Jun n/a n/a n/a
Hotel Plaza Valleyfield (4)(20) Salaberry-de-Valleyfield QC 122 Jun n/a n/a n/a
Hotel PUR Quebec (4) Quebec City QC 242 Jun n/a n/a n/a
Hôtel Acadia (25) Quebec City QC 40 Jul
$9,900,000 $125,300 n/a Hôtel L'Ermitage (25) Quebec City QC 10 Jul
Hôtel Louisbourg (25) Quebec City QC 22 Jul
Studios Nouvelle-France (25) Quebec City QC 7 Jul
Downtown Montreal Hotel (4) Montreal QC 353 Jul n/a n/a n/a
Holiday Inn Montreal Airport Saint-Laurent QC 258 Aug $24,200,000 $93,800 n/a
Residence Inn by Marriott Montreal Downtown Montreal QC 210 Aug $63,000,000 $300,000 n/a
Best Western Laval-Montreal (4) Laval QC 80 Oct n/a n/a n/a
Hôtel Suites Lac-Brome Foster QC 38 Oct $3,700,000 $97,400 n/a
Days Inn Trois-Rivières Trois-Rivières QC 75 Nov $3,700,000 $49,300 n/a
Hotel & Suites Les Laurentides Saint-Sauveur QC 40 Dec $2,960,000 $74,000 n/a
Hotel Le Clos Saint-Louis (4) Quebec City QC 18 Dec n/a n/a n/a
Quebec - 18 Trades 1,853 $259M Comfort Inn & Suites Yorkton (1) Yorkton SK 94 Oct $2,900,000 $30,900 n/a
Suburban Extended Stay Hotel Estevan (1) Estevan SK 135 Oct $4,075,000 $30,200 n/a
Saskatchewan - 2 Trades 229 $7M
2019 TRANSACTION LIST (CONTINUED)
2020 CANADIAN HOTEL INVESTMENT REPORT 2020 CANADIAN HOTEL INVESTMENT REPORT
TORONTO Brookfield Place 181 Bay Street Suite 1400 Toronto, ON M5J 2V1 +1 416 777 2200
VANCOUVER Granville Square 200 Granville Street Suite 1900 Vancouver, BC V6C 2R6 +1 604 681 4111
MONTREAL Bell Media Tower 1800 Avenue McGill College Suite 400 Montreal, QC H3A 3J6 +1 514 866 1900
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ALAM PIRANI +1 416 643 3414 [email protected]
TOM ANDREWS +1 604 661 0846 [email protected]
RUSSELL BEAUDRY +1 604 694 7243 [email protected]
HAMIR BANSAL +1 604 661 0850 [email protected]
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