Hotel Online  Special Report

2003 Canadian Hotel
Transaction Survey

CANADIAN LODGING OUTLOOK
November  2003 Year-to-Date


The Canadian Lodging Outlook is a joint monthly publication 
of Smith Travel Research and HVS International, 
Vancouver and Toronto, Canada
By: Kimberley Tyls, Rena Ryhorchuck, HVS International - Canada

In 2003, there were reportedly 55 hotels with a total of 7,159 guestrooms that changed hands across the country, representing approximately $447-million in annual investment. The average price was approximately $62,000 per room. The largest deal was the 607-room Wyndham Hotel in Montreal, which was purchased by CNL for $68.2-million, or $112,356 per room. This hotel is to be converted to the Hyatt Montreal Hotel. The second largest deal in the country was the 721-room Toronto Colony Hotel, which was purchased by the University of Toronto for a reported $67-million, or $92,926 per room. This hotel is being converted into student residences for the university.

In terms of hotel transactions and investment dollars, Ontario led the way with 19 properties sold with a total of approximately $160.5-million in investment dollars. The average price per room was $66,000. The highest grossing sale was the Toronto Colony Hotel at a reported $67-million.

Quebec, with a reported $133-million, was a close second in terms of investment dollars, but it had only five hotel transactions - the largest being the Wyndham Montreal Hotel at $68.2-million. In terms of average price per room, Quebec led the country with an average price per room of approximately $87,000.  With 16 hotel transactions and $97-million in investment dollars, Alberta's hotel transactions reflect an average price per room of $56,000.

The 313-room Sheraton Grande Edmonton, purchased by Sutton Place Hotel Group, sold for a reported $17-million, or $54,313 per room.  British Columbia reported 11 hotel transactions with a total of $48-million in investment dollars. The 192-room Parkhill Hotel in Vancouver sold for $16.5-million, or $85,938 per room, while the other properties sold for between $37,912 and $246,739 per room. The average price per room for British Columbia was approximately $56,700.

Saskatchewan reported having four hotel transactions totalling $8.55-million. The Quality Hotel in Saskatoon sold for $5.25-million, or $28,378 per room. The Imperial 400 sales brought the average price per room for Saskatchewan down to $13,857.

Fourteen properties sold for over $10-million. These hotels, which represent 55% of the total invested dollars in the country, are the Parkhill Hotel in Vancouver, the Best Western Village Park Inn in Calgary, the Dynasty Inn in Banff, the Sheraton Grande in Edmonton, the Toronto Colony Hotel, the Holiday Inn Burlington Hotel and Conference Centre, the Holiday Inn Kitchener, the Holiday Inn Peterborough, the Holiday Inn Sarnia, the Holiday Inn Select in Quebec City, the Radisson Longueuil Montreal, the Renaissance du Parc in Montreal, and the Wyndham Montreal Hotel. Of the hotels that sold, 28 were properties with fewer than 100 rooms, 19 hotels had fewer than 200 rooms, and eight hotels had over 200 rooms.

The following table summarizes hotel transactions over the last twelve years.

.
Hotel Transaction Summary for 1992-2003
Year
No. of 
Properties
No. 
of Rooms
Total 
Investment
Price 
Per Room
1992
9
1,874
$91,313,000
$48,726
1993
27
5,937
$221,356,000
$37,284
1994
28
4,056
$118,802,260
$29,290
1995
49
8,455
$443,801,820
$52,490
1996
77
15,638
$825,674,006
$52,799
1997
122
25,947
$1,981,851,306
$78,081
1998
172
24,090
$1,361,322,026
$56,510
1999
36
4,411
$406,284,400
$92,107
2000
48
5,760
$487,537,000
$84,642
2001
40
6,405
$650,815,000
$101,610
2002
56
6,297
~$500,000,000
~$80,000
2003
55
7,159
$447,216,100
$62,469

2003 Canadian Hotel Sales

(1) Sold as a portfolio of three properties
(2) Sales price includes 5.0 acres of excess land
(3) Share purchase
(4) Prices have been pro rated. The Imperial 400 Swift Current and the Imperial 400 Yorkton sold together for $2.25-million
(5) Converted to Student Residences

 
HVS Canada has not verified all individual hotel sales in this newsletter. However, we collected the information from sources we deemed reliable, and the data is thought to be correct. We cannot warrant its accuracy and provide it for your convenience only. Use of this information without verification from original sources is at your own risk.

A special thanks to: Bill Stone of Colliers; Denis Chevalier, AACI, and Jonas Locke of the Altus Group; Angus G.  Wilkinson of Tyne Hospitality; Ryan Gatschel of Glen Cowan and Associates; Robert Denis, AACI, of Chalifour, Denis and Associates; Jerry Kirkland, AACI, of Kirkland, Balsom & Associates; Greg Kwong and Germain Villeneuve of CB Richard Ellis; Paul Martin, AACI, and Todd Oeming of Oeming, Kennard and Company.

CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
November 2003 Year-to-Date

November 2003
Year to Date
Number
of Rooms
Occupancy Rate 2003 Occupancy Rate 2002 Average Room Rate 2003 Average Room Rate 2002 RevPAR 2003 RevPAR 2002 Room Supply % Change Room Demand % Change
Nova Scotia Area 1,693 61.1% 62.4% $83.44 $85.05 $50.98 $53.07 0.5% -1.7%
Halifax, NS 2,077 74.7% 74.0% $124.61 $118.95 $93.08 $88.02 3.7% 4.6%
Montreal, QC 14,861 65.0% 68.9% $122.32 $123.20 $79.51 $84.88 -0.1% -5.8%
Quebec City, QC 3,871 63.2% 69.1% $134.85 $142.10 $85.23 $98.19 0.5% -8.1%
Quebec Area 3,339 56.4% 58.5% $91.10 $89.79 $51.38 $52.53 0.0% -3.6%
Toronto Downtown 11,841 59.5% 69.9% $146.45 $167.96 $87.14 $117.40 -1.9% -16.5%
Toronto North/East 6,852 52.6% 61.4% $107.24 $111.82 $56.41 $68.66 3.7% -11.2%
Toronto Airport/West 6,004 63.3% 67.4% $107.06 $111.58 $67.77 $75.20 -4.3% -10.1%
Ottawa, ON 7,683 63.6% 65.0% $126.03 $126.57 $80.16 $82.27 1.9% -0.3%
Ontario East 3,732 55.2% 58.4% $93.61 $92.70 $51.67 $54.14 0.1% -5.4%
Ontario Southwest 8,265 57.1% 61.9% $92.68 $92.46 $52.92 $57.23 1.1% -6.8%
Ontario North 5,163 49.1% 52.9% $87.55 $93.24 $42.99 $49.32 0.3% -6.8%
Niagara Falls, ON 7,537 53.9% 61.0% $115.51 $126.01 $62.26 $76.87 2.2% -9.6%
Ontario Central 8,003 58.5% 62.1% $98.18 $98.95 $57.44 $61.45 3.5% -2.4%
Winnipeg, MB 3,661 60.8% 62.2% $91.01 $91.00 $55.33 $56.60 0.9% -1.5%
Regina/Saskatoon, SK 3,710 59.2% 62.5% $87.17 $84.61 $51.60 $52.88 -0.9% -6.1%
Calgary, AB 5,500 62.2% 64.8% $115.83 $118.15 $72.05 $76.56 0.0% -4.0%
Edmonton, AB 5,642 63.9% 75.3% $97.99 $93.73 $62.62 $70.58 1.6% -13.8%
Alberta Area 7,691 59.1% 62.2% $91.88 $92.14 $54.30 $57.31 1.9% -3.1%
Mountain Regions, AB 1,745 62.8% 68.3% $242.57 $224.74 $152.33 $153.50 -0.2% -8.3%
Vancouver, BC 12,286 63.0% 65.0% $129.58 $136.11 $81.64 $88.47 0.4% -2.7%
British Columbia Area 8,654 52.4% 52.5% $113.55 $115.45 $59.50 $60.61 1.4% 1.3%
Victoria, BC 2,980 61.4% 61.1% $108.78 $121.01 $66.79 $73.94 -0.1% 0.3%
Provinces
Alberta 20,547 61.5% 66.8% $115.11 $114.29 $70.79 $76.35 1.2% -6.8%
British Columbia 25,271 59.1% 61.0% $124.99 $129.73 $73.87 $79.14 0.9% -2.1%
Manitoba 3,984 60.5% 61.9% $89.75 $89.74 $54.30 $55.55 1.1% -1.3%
New Brunswick 2,854 63.1% 64.1% $96.19 $95.51 $60.70 $61.22 0.6% -0.9%
Newfoundland 1,245 67.5% 68.8% $109.88 $106.96 $74.17 $73.59 0.0% -1.8%
Nova Scotia 3,770 68.6% 68.9% $108.20 $105.25 $74.23 $72.52 1.4% 0.9%
Northwest Territories INS INS INS INS INS INS INS INS INS
Ontario 64,118 58.8% 64.1% $113.46 $121.50 $66.71 $77.88 0.8% -7.6%
Prince Edward Island 889 54.3% 53.6% $99.98 $99.36 $54.29 $53.26 0.0% 1.3%
Quebec 23,064 62.8% 66.6% $129.91 $132.56 $81.58 $88.28 0.0% -5.7%
Saskatchewan 4,673 56.8% 58.7% $82.18 $79.31 $46.68 $46.55 -0.4% -3.6%
Yukon Territory 181 INS INS INS INS INS INS INS INS
Canada 150,596 57.0% 60.4% $106.10 $108.69 $60.48 $65.65 0.7% -5.1%

Permission to republish any article in The Canadian Lodging Outlook is granted, provided that credit and
notification are given to HVS International. Hospitality Valuation Services, HVS and HVS logo
are registered service marks.


Contact:
Selina Lai
HVS International – Canada
2120 Queen St. East, Suite 202
Toronto, ON M42 1E2
(416) 686-2260, ext 21
(416) 686-2264 FAX
slai@hvsinternational.com
www.hvsinternational.com

Also See 2002 Canadian Hotel Transaction Survey / Canadian Lodging Outlook / Feb 2003
Year-to-date Occupancy through April is 50.4% for all of Canada / Canadian Lodging Outlook - April 2003 YTD / June 2003
SARS and Its Impact on Tourism in Toronto / Canadian Lodging Outlook - March 2003 YTD / May 2003
Hotel Values in Europe - Current Trends / Canadian Lodging Outlook - December 2002 Year-to-Date / Feb 2003
2002 Canadian Hotel Transaction Survey / Canadian Lodging Outlook / Feb 2003
Performance Clauses Essential In Hotel Management Contract / Stephen Rushmore / Canadian Lodging Outlook / Dec 2002
Separating the Hotel Looker From the Hotel Buyer / Stephen Rushmore / Canadian Lodging Outlook / Sept 2002
Making The Ideal Hotel Investment / Stephen Rushmore / Canadian Lodging Outlook / Aug 2002
Reporting In at Six Months..../ Canadian Lodging Outlook / July 2002
The Global Approach To Hotel Valuations / Canadian Lodging Outlook / June 2002
Hotel Insurance Premiums on the Rise? / Canadian Lodging Outlook / May 2002 
Hotel Development Cost Can Determine Feasibility / Canadian Lodging Outlook / May 2002 
Hotel Internet Distribution Channels / January 2002 Month-to-Date Results / Canadian Lodging Outlook / April 2002 
2001 Was a Great Year If You Were in Edmonton! / December 2001 Year-to-Date Results / Canadian Lodging Outlook / Feb 2002 
2001 Canadian Hotel Sales / Canadian Lodging Outlook / Jan 2002 
The Effect on Capitalization Rates and Discount Factors After September 11 / Canadian Lodging Outlook / Dec 2001 
So How Bad Was September for Canadian Hotels.. Pretty Bad! / Nov 2001
So How Bad Was September for Canadian Hotels.. Pretty Bad! / The Canadian Lodging Outlook / September 2001 
Have Hotel Values in Canada Declined Since September 11th? You Bet They Have / The Canadian Lodging Outlook / August 2001 
The Popularity of Boutique Hotels / The Canadian Lodging Outlook / July 2001 
Rising Energy Costs Cause Concern in the Lodging Industry / The Canadian Lodging Outlook / June 2001 
Niagara Falls: With Supply Comes Demand / The Canadian Lodging Outlook / May 2001 
Does Supply Generate Demand? / The Canadian Lodging Outlook / May 2001 
Optimism With a Hint of Caution, As Analysts Predict a Softer Year for the Canadian Hotel Industry / Mar 2001 
Limited-Service Growth in Canada - Where’s it Going? / The Canadian Lodging Outlook / January 2001 
HVS Canada in Review - Year End 2000 / The Canadian Lodging Outlook / March 2001 
Canadian Lodging Outlook / May 2000 Year to Date Statistics / HVS International - Canada / July 2000 
The Rule of Thumb Method...Does It Still Hold Weight? / Elaine Sahlins - HVS / Oct 2000
What’s Hot and What’s Not in Western Canadian Hotel Markets / Mar 2000


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