In 2004, there have been 68 reported hotel sales with a total inventory of 7,228 guestrooms representing total  transaction value of $426-million. The average price was $59,000 per room which is slightly lower than the $62,000 average in 2003. In looking at the data 2004 appears to have had a significant increase in small particularly non-branded transactions. The largest transaction was that of the Regal Constellation Toronto Airport at $24-million however given that this property was in receivership, on a per room basis this represented the lowest sale at $28,674. This hotel is to be completely renovated and revamped. The second largest sale was that of the Radisson Burnaby Villa at $23.5-million. This property is also to be revamped with an expanded casino. The transaction with the highest price per guestroom occurred in Quebec with the sale of the newly built 130-room Hotel Mortagne in Longueuil at $134, 615 per guestroom. In 2004 we saw Innvest Real Estate Investment Trust acquire 10 properties across the country, nine Holiday Inns and one Quality Hotel. 

On a provincial level, Ontario had the greatest number of reported sales at 27 sales totaling roundly $172-million in investment. The average price was down from 2003 by about 25% to $49,000 per room. Only twelve of these transactions involved branded properties. 

The province with the second largest number of reported transactions was British Columbia with 17 transactions with a total value of $82-million. The number of reported transactions was higher than last year with the average price up slightly to $61,000 per guestroom. It should be noted that the high per-room purchase price on the Parskville Motel was given that it was mainly a land sale. 

Alberta had 11 transactions with an investment value of $85-million or $74,000 a room with the largest sale being the Holiday Inn in downtown Calgary at $17.5-million. The number of transactions is down from 2003 however the price per guestroom was up from $56,000 in 2003. 

Quebec reported five transactions totaling $25-million with the most onerous being that of the Hotel Mortagne located in Longueuil. The average price per guestroom in the province was $76,000. 

Saskatchewan also had five transactions totaling $32.5-million and an average guestroom price of $82,000. Manitoba only had one reported sale at $13.4-million of the Radisson Suite Hotel Winnipeg Airport. 

Nova Scotia was the only Atlantic province to report a sale and that was the acquisition by Innvest Real Estate Investment Trust of the Holiday Inn in Dartmouth at $8.8-million or $44,898 per guestroom. 

The North West Territories also had one sale this year in Yellowknife of the Explorer Hotel at $6.4-million or $49,600 per room. 

Although there appears to be strong hotel investor appetite, financing seems to remain the number one challenge and as a result 2004 witnessed mostly smaller transactions with only eight transactions greater than $10-million other than the portfolio acquisition by Innvest Real Estate Investment Trust. In terms of room count, only two Toronto properties and one Burnaby hotel transacted were larger than 250 rooms. The Regal Constellation Toronto Airport (837 rooms), the Inn on the Park (570 rooms) and the Radisson Hotel Burnaby (275 rooms).

A special thanks to: Bill Stone of Colliers; Denis Chevalier, AACI, and Jonas Locke of the Altus Group; Angus G. Wilkinson of Tyne Hospitality; Jerry Kirkland, AACI, of Kirkland, Balsom & Associates; Greg Kwong of CB Richard Ellis; Gary Mirtle of Flynn Mirtle Moran; Michael Turner of Turner Drake & Partners; Tony Sevelka of InterVal; and Tamara Lawson of Invest REIT.