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.
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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