Canadian Lodging Industry Overview - Hospitality & Gaming

A Cushman & Wakefield Valuation & Advisory Publication

Last year (2016) was a near record year for hotel investment in Canada with total transaction volume at $4.1 billion. The record high transaction volume was largely attributed to the 112-property InnVest REIT sale which traded for $2.1 billion in 2016. Despite the weak investment climate in energy-based Canadian markets, investment activity has remained strong, particularly in Metropolitan Vancouver, Toronto, and Montreal. Activity has been fueled by the lower Canadian dollar, an abundance of equity capital, resilient debt market conditions, and an overall stable national economy. In 2017, the total transaction volume reached approximately $2.625 billion in October. Central Canada continues to lead transactions at 52% of the national total, followed by Western and Atlantic Canada

Transaction Volume by Region Year-to-Date Traditional Sales Province Properties

%

Ontario

52 50% 18 17% 12 12% 10 10%

British Columbia

Quebec Alberta

New Brunswick

5 2 2 1 1

5% 2% 2% 1% 1%

Nova Scotia

Manitoba Nunavut

Prince Edward Island

Year-to-Date Total Traditional Sales Year-to-Date Total Rooms

103

10,642

Year-to-Date Total Traditional Sales Volume Total $ Volume Price per Room

# of Sales

$1,334,631,934 $152,251

95

* Excludes eight sales due to confidential pricing

12

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