2016 was an exceptionally strong year for Canadian hotel transaction activity and in many markets, a robust year for operating performance. Overall investment sentiment for hospitality assets remains positive, particularly in major urban centres with growing interest in tertiary markets.
- Investor sentiment remains strong with 45% of respondents indicating buying as their primary investment strategy for the next twelve months, the second highest buy signal over the past seven years.
- Intentions to hold, renovate or expand have been elevated over the past two years and was indicated by 33%.
- The proportion of those reporting building new hotels as a primary investment strategy has been largely flat since 2013 and was specified by 17%.
- Only 5% of respondents conveyed selling as their primary strategy in 2017, however, 40% indicated plans or potential plans to dispose of hotel assets through the next twelve months.
- Principal reasons for selling remained the same as previous years including recycling capital (62%) and timing the market (27%).
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