Deal volume soared by 54 per cent in 2011, surpassing $1 billion; Price-Per-Room value also rose by 30 per cent to $108,000
For the second consecutive year Canada’s Hotel Real Estate Market experienced a massive increase in deal activity, according to the 2012 Canadian Hotel Investment Report released today by Colliers International Hotels. Transaction volume in 2011 reached over $1.1 billion, representing 54 per cent and 167 per cent increases compared to 2010 and 2009 respectively. A total of 99 transactions were completed in 2011, significantly above the 86 sold in 2010 and 74 in 2009. Average Price-Per-Room also increased in 2011 to $108,000, a 30 per cent increase over 2010.
“In terms of hotel investment activity, 2011 was among the top five years for the industry since Colliers started tracking transactions 25 years ago,” said Alam Pirani, Executive Managing Director with Colliers International Hotels. “This can largely be attributed to increased optimism stemming from the global economic recovery, as well as cross-border owners who capitalized on the strong Canadian dollar by offering rare and high-quality assets for sale.”
According to Colliers International Hotels, nearly 40 per cent of hotel transaction volume over the past year came from cross-border sellers, primarily US private equity funds monetizing assets to redeploy capital. Robin McLuskie, Vice President with Colliers International Hotels, added “these transactions represented significant single asset and portfolio sales and lifted the overall market.” Overall full-service hotels accounted for over half of the total transaction market in dollar terms, but just 21 of the 99 trades.
Regional Transaction Analysis
Unlike the previous year, transaction activity across Canada was relatively balanced with Western Canada topping in terms of transaction volume ($612 million vs. $495 million in the east) and Eastern Canada leading in the number of assets sales (53 vs. 46 in the west). On a provincial level, Ontario led the pack in terms of volume and number of trades ($388 million, 42) followed by B.C. ($311 million, 18) and Alberta ($197 million, 17). Saskatchewan and Manitoba also experienced a significant increase in deal activity in relative terms (510 per cent and 135 per cent) compared to the previous year. This is mainly attributed to product availability and a strong desire shown by investors given the solid economic strength in these markets. The province of Quebec was the only market that experienced a decline in activity, coming in at -14 per cent over last year.
For the second consecutive year Canada’s Hotel Real Estate Market experienced a massive increase in deal activity, according to the 2012 Canadian Hotel Investment Report released today by Colliers International Hotels. Transaction volume in 2011 reached over $1.1 billion, representing 54 per cent and 167 per cent increases compared to 2010 and 2009 respectively. A total of 99 transactions were completed in 2011, significantly above the 86 sold in 2010 and 74 in 2009. Average Price-Per-Room also increased in 2011 to $108,000, a 30 per cent increase over 2010.
“In terms of hotel investment activity, 2011 was among the top five years for the industry since Colliers started tracking transactions 25 years ago,” said Alam Pirani, Executive Managing Director with Colliers International Hotels. “This can largely be attributed to increased optimism stemming from the global economic recovery, as well as cross-border owners who capitalized on the strong Canadian dollar by offering rare and high-quality assets for sale.”
According to Colliers International Hotels, nearly 40 per cent of hotel transaction volume over the past year came from cross-border sellers, primarily US private equity funds monetizing assets to redeploy capital. Robin McLuskie, Vice President with Colliers International Hotels, added “these transactions represented significant single asset and portfolio sales and lifted the overall market.” Overall full-service hotels accounted for over half of the total transaction market in dollar terms, but just 21 of the 99 trades.
Regional Transaction Analysis
Unlike the previous year, transaction activity across Canada was relatively balanced with Western Canada topping in terms of transaction volume ($612 million vs. $495 million in the east) and Eastern Canada leading in the number of assets sales (53 vs. 46 in the west). On a provincial level, Ontario led the pack in terms of volume and number of trades ($388 million, 42) followed by B.C. ($311 million, 18) and Alberta ($197 million, 17). Saskatchewan and Manitoba also experienced a significant increase in deal activity in relative terms (510 per cent and 135 per cent) compared to the previous year. This is mainly attributed to product availability and a strong desire shown by investors given the solid economic strength in these markets. The province of Quebec was the only market that experienced a decline in activity, coming in at -14 per cent over last year.
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