The Canadian hotel industry continues to be optimistic after recording its best year since the 2008 recession, with more than $2 billion in transaction volume, reports Colliers International.

According to the Canadian Hotel Investment Sentiment Survey, Q4 2013, the year had the highest transaction volume since 2007, making it the third best year on record for the Canadian hotel industry.

The survey, which was prepared in conjunction with the Ted Rogers School of Hospitality & Tourism Management at Ryerson University, asked members of the Canadian hotel industry about topical investment intentions, as well as the economic and financing environment.

Transaction volume in 2013 grew by more than two-thirds from 2012, with increases in the average room prices and deal sizes. The survey showed that investors have varying opinions of what is the ideal property size, with about 42 per cent favouring assets in the 101–175 room range.

Investors remain optimistic, with 72 per cent indicating a positive or somewhat positive economic sentiment for Canada in the next three-to-five years. Though investors indicated a desire to buy and hold in 2014, about 40 per cent indicated they had potential plans to sell — the main reason being to redeploy capital.

Transaction highlights for 2013 include the sale of the Fairmont Chateau Laurier in Ottawa for $120 million, as well as the 2,925 room Westin Canadian Hotel portfolio that sold for $765 million. About one-third of the industry’s transaction volume occurred in the Greater Toronto Area, which saw an estimated $650 million in volume.