In 2001, 40 hotels sold in Canada, a decline when compared to the 48 transactions that took place in 2000. Total investment was approximately $650 million for 6,405 rooms, or $101,610 per room. Of the 40 transactions, the vast majority of them took place in British Columbia, Ontario and Quebec, with these three provinces representing 96% of the total hotel investment throughout Canada. The most significant transactions of 2001, representing 47% of the total hotel investment, were two Fairmont Hotels and Resorts properties. The transactions involved the Fairmont Empress ($120,000,000) in Victoria, B.C. and the Fairmont Chateau Frontenac ($185,000,000) in Quebec City, PQ. Legacy REIT, which is partially owned by Fairmont Hotels & Resorts, purchased the interests in the two Fairmont properties, from Canadian Pacific Hotels and Resorts Ltd. Excluding these two transactions, the average price per room in Canada in 2001 is approximately $65,101 per room. 

Ontario led the country with 17 sales, had a total investment of over $161 million, which accounted for 25% of total sales. The major transactions in Ontario included the Sheraton Center Toronto, in which Starwood Hotels and Resorts purchased the remaining 50% interest for $75,000,000. The Novotel Toronto Airport was purchased by the Greater Toronto Airport Authority (GTAA) in July for $18,750,000, or $132,042 per room. The Orsini Family sold the Ramada Coral Inn Resort and the Ramada Suites Niagara, on Lundy's Lane in Niagara Falls, for $16,520,000. The 129-unit Coral Inn sold for $66,822 per room and the 73-unit Ramada Suites for $108,219 per room. 

British Columbia had nine transactions for a total investment of over $228 million, which accounted for 35% of total sales. The major transactions in B.C. included the Fairmont Empress Hotel, which was acquired for $120 million, or $254,237 per room by Legacy REIT. The 81-unit Summit Lodge in Whistler sold in November for $21 million, or $259,259 per room. The Coast Whistler Resort was purchased in August for $30 million (estimated), or $161,290 per room. The Holiday Inn in downtown Vancouver was purchased in October for $28 million, or $114,286 per room.

There were seven transactions, totaling over $233 million recorded in Quebec, which accounted for 36% of the value of Canada's total transactions. The largest transaction was the 607-room Le Chateau Frontenac, in Quebec City, that was purchased for $185 million, or $304,778 per room by Legacy REIT. The Hotel Chateau Royal in Montreal traded for $9.7 million, or $86,607 per room in June. 

Alberta had four hotel transactions totaling over $11 million. The 42-unit Best Western White Wolf Inn in Hinton sold for $2.8 million, or $67,262 per room. The remaining three hotels sold for between $18,478 and $63,636 per room. 

In Saskatchewan, the 69-unit Super 8 in Saskatoon traded in February for $3,825,000, or $55,435 per room, while the Imperial 400 Motel was sold in December for $2,200,000. A single transaction took place in Manitoba with the 284-room Best Western International Inn in Winnipeg selling in June for $10,150,000, or $35,739 per room. 

To our knowledge, Atlantic Canada and the Territories did not record any significant hotel transactions in 2001. 

Half of the hotels that sold were 100 or less rooms, while hotels with over 200 guestrooms accounted for only 18% of all transactions. While this trend has been prevalent for the past two years, we expect it to continue due to the lack of hotel financing throughout the country. 

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 International Hotel Realty; Denis Chevalier, AACI, of the Altus Group; Angus G. Wilkinson, CGA, of Tyne Hospitality Services Limited; Peter M. Lawrek, AACI, of Crown Appraisals; Don Pateman, AACI, of Penny and Keenlyside Appraisals; Jim Mouzarakis, of Goddard & Smith; Tim Dmytruk of Glen Cowan and Associates; Jerry Kirkland, AACI, of Kirkland, Balsom & Associates; Michael S. Turner of Turner Drake & Partners Ltd.; Rick Brunsdon of Brunsdon Martin & Associates; Greg Kwong of CB Richard Ellis - Alberta; and Jonas Locke of the Altus Group.