2003 Canadian Hotel Sales
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Transaction Survey CANADIAN LODGING OUTLOOK
The Canadian Lodging Outlook is a joint monthly publication of Smith Travel Research and HVS International, Vancouver and Toronto, Canada |
| By: Kimberley Tyls, Rena Ryhorchuck, HVS International - Canada
In 2003, there were reportedly 55 hotels with a total of 7,159 guestrooms that changed hands across the country, representing approximately $447-million in annual investment. The average price was approximately $62,000 per room. The largest deal was the 607-room Wyndham Hotel in Montreal, which was purchased by CNL for $68.2-million, or $112,356 per room. This hotel is to be converted to the Hyatt Montreal Hotel. The second largest deal in the country was the 721-room Toronto Colony Hotel, which was purchased by the University of Toronto for a reported $67-million, or $92,926 per room. This hotel is being converted into student residences for the university. In terms of hotel transactions and investment dollars, Ontario led the way with 19 properties sold with a total of approximately $160.5-million in investment dollars. The average price per room was $66,000. The highest grossing sale was the Toronto Colony Hotel at a reported $67-million. Quebec, with a reported $133-million, was a close second in terms of investment dollars, but it had only five hotel transactions - the largest being the Wyndham Montreal Hotel at $68.2-million. In terms of average price per room, Quebec led the country with an average price per room of approximately $87,000. With 16 hotel transactions and $97-million in investment dollars, Alberta's hotel transactions reflect an average price per room of $56,000. The 313-room Sheraton Grande Edmonton, purchased by Sutton Place Hotel Group, sold for a reported $17-million, or $54,313 per room. British Columbia reported 11 hotel transactions with a total of $48-million in investment dollars. The 192-room Parkhill Hotel in Vancouver sold for $16.5-million, or $85,938 per room, while the other properties sold for between $37,912 and $246,739 per room. The average price per room for British Columbia was approximately $56,700. Saskatchewan reported having four hotel transactions totalling $8.55-million. The Quality Hotel in Saskatoon sold for $5.25-million, or $28,378 per room. The Imperial 400 sales brought the average price per room for Saskatchewan down to $13,857. Fourteen properties sold for over $10-million. These hotels, which represent 55% of the total invested dollars in the country, are the Parkhill Hotel in Vancouver, the Best Western Village Park Inn in Calgary, the Dynasty Inn in Banff, the Sheraton Grande in Edmonton, the Toronto Colony Hotel, the Holiday Inn Burlington Hotel and Conference Centre, the Holiday Inn Kitchener, the Holiday Inn Peterborough, the Holiday Inn Sarnia, the Holiday Inn Select in Quebec City, the Radisson Longueuil Montreal, the Renaissance du Parc in Montreal, and the Wyndham Montreal Hotel. Of the hotels that sold, 28 were properties with fewer than 100 rooms, 19 hotels had fewer than 200 rooms, and eight hotels had over 200 rooms. The following table summarizes hotel transactions over the last twelve years. Hotel Transaction Summary for 1992-2003
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2003 Canadian Hotel Sales
(1) Sold as a portfolio of three properties
(2) Sales price includes 5.0 acres of excess land
(3) Share purchase
(4) Prices have been pro rated. The Imperial 400 Swift Current and the Imperial 400 Yorkton sold together for $2.25-million
(5) Converted to Student Residences
| HVS Canada has not verified all individual hotel sales in this newsletter.
However, we collected the information from sources we deemed reliable,
and the data is thought to be correct. We cannot warrant its accuracy and
provide it for your convenience only. Use of this information without verification
from original sources is at your own risk.
A special thanks to: Bill Stone of Colliers; Denis Chevalier, AACI, and Jonas Locke of the Altus Group; Angus G. Wilkinson of Tyne Hospitality; Ryan Gatschel of Glen Cowan and Associates; Robert Denis, AACI, of Chalifour, Denis and Associates; Jerry Kirkland, AACI, of Kirkland, Balsom & Associates; Greg Kwong and Germain Villeneuve of CB Richard Ellis; Paul Martin, AACI, and Todd Oeming of Oeming, Kennard and Company. |
CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
November 2003 Year-to-Date
| November 2003
Year to Date |
Number
of Rooms |
Occupancy Rate 2003 | Occupancy Rate 2002 | Average Room Rate 2003 | Average Room Rate 2002 | RevPAR 2003 | RevPAR 2002 | Room Supply % Change | Room Demand % Change |
| Nova Scotia Area | 1,693 | 61.1% | 62.4% | $83.44 | $85.05 | $50.98 | $53.07 | 0.5% | -1.7% |
| Halifax, NS | 2,077 | 74.7% | 74.0% | $124.61 | $118.95 | $93.08 | $88.02 | 3.7% | 4.6% |
| Montreal, QC | 14,861 | 65.0% | 68.9% | $122.32 | $123.20 | $79.51 | $84.88 | -0.1% | -5.8% |
| Quebec City, QC | 3,871 | 63.2% | 69.1% | $134.85 | $142.10 | $85.23 | $98.19 | 0.5% | -8.1% |
| Quebec Area | 3,339 | 56.4% | 58.5% | $91.10 | $89.79 | $51.38 | $52.53 | 0.0% | -3.6% |
| Toronto Downtown | 11,841 | 59.5% | 69.9% | $146.45 | $167.96 | $87.14 | $117.40 | -1.9% | -16.5% |
| Toronto North/East | 6,852 | 52.6% | 61.4% | $107.24 | $111.82 | $56.41 | $68.66 | 3.7% | -11.2% |
| Toronto Airport/West | 6,004 | 63.3% | 67.4% | $107.06 | $111.58 | $67.77 | $75.20 | -4.3% | -10.1% |
| Ottawa, ON | 7,683 | 63.6% | 65.0% | $126.03 | $126.57 | $80.16 | $82.27 | 1.9% | -0.3% |
| Ontario East | 3,732 | 55.2% | 58.4% | $93.61 | $92.70 | $51.67 | $54.14 | 0.1% | -5.4% |
| Ontario Southwest | 8,265 | 57.1% | 61.9% | $92.68 | $92.46 | $52.92 | $57.23 | 1.1% | -6.8% |
| Ontario North | 5,163 | 49.1% | 52.9% | $87.55 | $93.24 | $42.99 | $49.32 | 0.3% | -6.8% |
| Niagara Falls, ON | 7,537 | 53.9% | 61.0% | $115.51 | $126.01 | $62.26 | $76.87 | 2.2% | -9.6% |
| Ontario Central | 8,003 | 58.5% | 62.1% | $98.18 | $98.95 | $57.44 | $61.45 | 3.5% | -2.4% |
| Winnipeg, MB | 3,661 | 60.8% | 62.2% | $91.01 | $91.00 | $55.33 | $56.60 | 0.9% | -1.5% |
| Regina/Saskatoon, SK | 3,710 | 59.2% | 62.5% | $87.17 | $84.61 | $51.60 | $52.88 | -0.9% | -6.1% |
| Calgary, AB | 5,500 | 62.2% | 64.8% | $115.83 | $118.15 | $72.05 | $76.56 | 0.0% | -4.0% |
| Edmonton, AB | 5,642 | 63.9% | 75.3% | $97.99 | $93.73 | $62.62 | $70.58 | 1.6% | -13.8% |
| Alberta Area | 7,691 | 59.1% | 62.2% | $91.88 | $92.14 | $54.30 | $57.31 | 1.9% | -3.1% |
| Mountain Regions, AB | 1,745 | 62.8% | 68.3% | $242.57 | $224.74 | $152.33 | $153.50 | -0.2% | -8.3% |
| Vancouver, BC | 12,286 | 63.0% | 65.0% | $129.58 | $136.11 | $81.64 | $88.47 | 0.4% | -2.7% |
| British Columbia Area | 8,654 | 52.4% | 52.5% | $113.55 | $115.45 | $59.50 | $60.61 | 1.4% | 1.3% |
| Victoria, BC | 2,980 | 61.4% | 61.1% | $108.78 | $121.01 | $66.79 | $73.94 | -0.1% | 0.3% |
| Provinces | |||||||||
| Alberta | 20,547 | 61.5% | 66.8% | $115.11 | $114.29 | $70.79 | $76.35 | 1.2% | -6.8% |
| British Columbia | 25,271 | 59.1% | 61.0% | $124.99 | $129.73 | $73.87 | $79.14 | 0.9% | -2.1% |
| Manitoba | 3,984 | 60.5% | 61.9% | $89.75 | $89.74 | $54.30 | $55.55 | 1.1% | -1.3% |
| New Brunswick | 2,854 | 63.1% | 64.1% | $96.19 | $95.51 | $60.70 | $61.22 | 0.6% | -0.9% |
| Newfoundland | 1,245 | 67.5% | 68.8% | $109.88 | $106.96 | $74.17 | $73.59 | 0.0% | -1.8% |
| Nova Scotia | 3,770 | 68.6% | 68.9% | $108.20 | $105.25 | $74.23 | $72.52 | 1.4% | 0.9% |
| Northwest Territories | INS | INS | INS | INS | INS | INS | INS | INS | INS |
| Ontario | 64,118 | 58.8% | 64.1% | $113.46 | $121.50 | $66.71 | $77.88 | 0.8% | -7.6% |
| Prince Edward Island | 889 | 54.3% | 53.6% | $99.98 | $99.36 | $54.29 | $53.26 | 0.0% | 1.3% |
| Quebec | 23,064 | 62.8% | 66.6% | $129.91 | $132.56 | $81.58 | $88.28 | 0.0% | -5.7% |
| Saskatchewan | 4,673 | 56.8% | 58.7% | $82.18 | $79.31 | $46.68 | $46.55 | -0.4% | -3.6% |
| Yukon Territory | 181 | INS | INS | INS | INS | INS | INS | INS | INS |
| Canada | 150,596 | 57.0% | 60.4% | $106.10 | $108.69 | $60.48 | $65.65 | 0.7% | -5.1% |
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Outlook is granted, provided that credit and
notification are given to HVS International. Hospitality
Valuation Services, HVS and HVS logo
are registered service marks.
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Selina Lai HVS International � Canada 2120 Queen St. East, Suite 202 Toronto, ON M42 1E2 (416) 686-2260, ext 21 (416) 686-2264 FAX [email protected] www.hvsinternational.com |