Canadian Hotel Transaction Trends

Colliers International Hotels Q2 2015 INNvestment Canada (PDF Download)

2015 first half volume the highest since 2007

Colliers International Canada's hotel real estate market continues to soar with aggregate transaction volume of more than $915 million for the first half of the year, a 60% increase from the same period in 2014. 

Download the mid-year transaction report which also includes Colliers International Hotels' Hotel Pulse which takes a look at the biggest headlines in the Canadian lodging industry.

Cover from Colliers International Hotels Q1 2015 INNvestment Canada Colliers International Hotels Q2 2015 INNvestment Canada

Aggregate hotel transaction volume reached more than $915 million for the first half of the year with the sale of 55 hotels across the country. This represents a 60% increase from the same period in 2014 and surpasses the highest first-half volume on record since 2007 ($871 million). Contributing to this tremendous activity were two strategic trades1, representing 40% of aggregate volume and totaling $367 million. When excluding strategic deals, traditional transaction volume was slightly below the $570 million in deal volume recorded for the same period in 2014.

Pricing metrics trended positively from mid-year 2014 with average price per room growing 46% to $106,100. When removing strategic trades, average price per room still improved considerably, growing 6% from $72,800 to $76,900. Second quarter transactions illustrate the mix of product- types that sold in the last three months from smaller limited service assets such as the 58-room Comfort Inn Barrie in Ontario which sold for $3.21 million ($55,300 per room) to the full-service 254-room Delta Brunswick in Saint John, New Brunswick which sold as part of a larger retail and office complex for a combined $57 million (hotel allocation confidential). 

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