Published on : Friday, June 23, 2017
Last year, the hotel sales transactions reached an overwhelming $4.1 billion, as declared by Colliers International Hotels on Thursday. However, this company has confessed that the statistics is expected to decline to $3 billion in 2017.
In 2016, this sector was driven mainly by the Chinese investment deals.
Alam Pirani who is the executive managing director of hotels for Colliers stated that the low Canadian dollar, the outflow of Chinese capital and the higher revenues of the hospitality assets combined with the strong operating performance have started raising the liquidity in the market.
The $4.1 billion in hotel sector investment is known to be the second highest amount so far on record.
The figure marked almost a 70% rise from that a year ago. Colliers stated that 2017 also observed a fresh high for average sales price for a room at $99,000 pushed by foreign capital that comprised for 67% of total transaction volume.
Pirani mentioned that a weaker loonie gives investors more purchasing power.
The stable economic environment and also the political scenario is ideal for capital pouring in from China, he feels. The report revealed that the fastest growing arenas in terms of revenue per available room or RevPAR included Windsor, downtown Toronto, Vancouver, South Surrey and then Banff, as per the Smith Travel Research.
2017 appears to be moving slower in terms of investment.
However, Collier noted that the first quarter of 2017 already witnessed the completion of a $1 billion transaction that would play a crucial part in boosting overall numbers for the year.
Robin McLusie, vice-president of hotels with Colliers said that they have been expecting foreign capital to keep flowing inside the borders of Canada.
He further stated that they expect the annualized supply growth to reach between 1.5 and 2% in the next two or three years.