TORONTO — A steady stream of trading activity continued in the third quarter of 2019, according to Colliers International Hotels’ INNvestment Canada Hotel Report Q3 2019.
Elevated by larger deals in the Greater Montreal and Toronto areas and Niagara Falls, Q3 saw 32 transactions totalling nearly $360 million across the country. This brings the year-to-date (YTD) total to $1.25 billion, up 13 per cent year-over-year. Approximately 62 per cent of YTD transactions have taken place in eastern Canada (east of Manitoba) — led by Ontario (38 per cent) and Quebec (18 per cent) — and 38 per cent in the west, primarily in Alberta (27 per cent).
Average price-per-key and deal-size metrics are trending positively — reflecting the sale of larger urban transactions in Q3 — with average price per key at $130,600 and average deal size at $12.8 million.
Highlights of Q3 include the $63-million ($300,000 per key) sale of the 210-room Residence Inn by Marriott Montreal Downtown, which is ranked the quarter’s largest sale. And, the Holiday Inn Express Toronto-North York sold for $29.25 million ($179,400 per key), marking only the third hotel sale in Toronto this year. The quarter also saw five portfolio sales totalling 13 properties and $86.6 million in deal volume in Ontario, Quebec, Nova Scotia and New Brunswick.
The report also features a Hotel Real Estate Debt Update by CFO Capital. The complete report is available here.