Canadian hotel market exhibiting continuous strength - CBRE
A recently released report from CBRE noted that investing in Canada’s hotel segment is an excellent move at the moment, considering the market’s 2017 investment and operations strength that is expected to continue well into this year.
According to CBRE’s 2018 Canadian Hotels Outlook, last year’s hotel investment volume reached $3.4 billion, including mergers and acquisitions. Taken together with the $4.1 billion in 2016, the hotel segment’s past two years have been characterized by strong merger and acquisition deals along with healthy tourism numbers, especially in the country’s three largest cities.
“I do think the industry is quite synchronized right now,” CBRE executive vice-president (hotels capital markets group) Bill Stone said, as quoted by Property Biz Canada. “We’ve got strong fundamentals. The Canadian economy is performing quite well and perceived globally as a true safe haven.”
Stone added that the trend towards increased condominium construction activity is protecting the market from an oversupply of hotel rooms.
Room demand went up by 4.1% nationwide, with the market seeing growth in revenue per available room (RevPAR) of over 8% in 2017, to $102.
Hotel profits went up 16% overall, climbing in 2017 to $14,300 per available room. British Columbia posted the greatest numbers last year at $23,600 per available room, the report noted.