Hotel transactions in Canada reached more than $915 million during the first half of 2015 and exceeded the highest first-half volume on record since 2007, which was $871 million.
According to the mid-year transaction report from Colliers International, the sale of 55 hotels across the country, also represents a 60 per cent increase from the same time period in 2014.
Two strategic trades were factors contributing to this higher number, representing 40 per cent of the total volume. Yet, when discounting these deals, traditional transaction volume dipped below the $570 million in deal volume recorded for 2014.
Average price per room grew 46 per cent to $106,100 from mid-year 2014. Q2 transactions show the different asset types sold from smaller limited service assets such as the 58-room Comfort Inn Barrie in Ontario which sold for $3.21 million ($55,300 per room) to the full-service 254-room Delta Brunswick in Saint John, New Brunswick, sold as part of a larger retail and office complex for a combined $57 million.
As a result of strategic trades, Western Canada led the country on per room pricing, while Eastern Canada led on volume. Ontario remains the most active investment market accounting for 48 per cent of deal volume, followed by British Columbia at 33 per cent, Quebec at 9 per cent and provinces in Atlantic Canada at 3 per cent.
The bulk of national trades were located in secondary and tertiary markets while urban markets accounted for the majority of deal volume. Toronto continued to be a hot-spot for investment with 11 trades accounting for 39 per cent of national volume.