Canadian hotel sector catapults in first half of 2023
A strong pace of activity in the second quarter catapulted first-half volume to more than $1 billion with notable urban and resort market sales, according to Colliers.
Approximately C$1.05 billion ($780 million) of hotels transacted in the first half of the year, nearly double that of comparable investment levels in 2022, with 90 percent of volume related to acquisitions for ongoing hotel use. Elevated by nine transactions over the C$25 million ($19 million) mark, Colliers Hotels recorded some C$740 million ($549 million) of sales in the second quarter, representing 70 percent of year-to-date volume, with major trades in Toronto, Banff, Kelowna and the Atlantic coast, among others. Reflecting the influx of high-watermark transactions, normalized average price per key metrics paced at C$192,100 ($142,400), up more than 30 percent year-over-year.
Private domestic capital sources continue to drive both buy- and sell-side activity in the market with moderate participation