Canadian hotel trading reached $1.4 billion in 2014

TORONTO — Colliers International Hotels’ fourth quarter Canadian Hotel Investment Sentiment Survey indicated that investors continue to show growing confidence in the Canadian market.

TORONTO —
Colliers International Hotels’ fourth quarter Canadian Hotel Investment Sentiment Survey indicated that investors continue to show growing confidence
in the Canadian market.

The report, prepared
in conjunction
with the Ted Rogers School of Hospitality and Tourism Management at Ryerson
University, was released on Feb. 9. A total of 108 investors participated in
the 2014 survey with the majority being Canadian-based.

Highlights:

–  Investors
reported a strong appetite to invest: 49 per cent indicated buying is their primary
investment strategy in 2015, the highest buy signal since the survey’s
inception five years ago;

–  Almost
a quarter of respondents indicated plans to sell assets this year;

–  Investors
planning to dispose of assets cited recycling capital and timing the market as
the principal motivations; and

–  Urban
markets remain most popular, however interest in new construction and buying
smaller assets in secondary and tertiary markets continues to emerge as a
growing trend.

In 2014,
Canadian hotel trading was more than $1.4 billion, which according to Colliers
is the second highest since 2007. More details will be available in the
upcoming 2015 Canadian Hotel Investment Report to be released this quarter.

In February,
Colliers Hotel International also reported the completion of 40 lodging
transactions in 2014 representing $750 million in deal volume.

Some highlights
include: 15 transactions on behalf on InnVest Reit (1,378 keys in Ontario
Quebec and the Maritimes); the purchase of Park Hyatt Toronto (346 keys and plus
commercial space); the newly built, duel-branded Courtyard & Residence Inn
Calgary (328 keys); Ontario Select Service Portfolio (419 keys in Brampton,
Sudbury and Mississauga, Ont.); Fairmont Le Chateau Montebello (211 keys and
about 1,000 acres); and Toronto Area Hilton Extended Stay Portfolio (578 keys).