Canadian hotel transactions are down significantly during the midpoint of 2014, with 20 fewer deals compared to the same period last year. The transaction volume for the second quarter, which excludes the confidential sale of the Fairmont Empress Hotel, totals $170 million.
“With this significant sale excluded, year-to-date transaction volume has reached approximately $374 million, less than half the volume reported at the same time last year,” reads CBRE’s Canadian Hotel Investment Trends report.
The national per room pricing was $67,000, a $25,000 decrease from the first half of 2013. The majority of sales occurred in smaller urban markets, which in part explains the low per-room average. Only one sale has surpassed the $50-million mark, down from four during the same period last year.
Ontario and Quebec accounted for 51 per cent, or $189 million, of transaction volume. In contrast, only one Eastern Canadian hotel sold during the first half of the year, accounting for exactly 1 per cent of total volume.
While transactions were down compared to last year, the occupancy rate increased from 60 per cent to 61.7 per cent. Additionally, room demand grew slightly (3.3 per cent).
