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Hotel real estate has hot sales year

 
 

Hotel real estate has hot sales year

Canada's hotel real-estate industry was hot in 2011, with transaction volumes rising to $1.1 billion - 54 per cent over the previous year, and 167 per cent higher than in 2009, according to a report released Thursday by Colliers International Hotels.

There were a total of 99 completed transactions in 2011, Colliers said in its Canadian Hotel Investment Report, compared with 86 in 2010 and 74 in 2009.

The average price per room increased to $108,000 last year, a 30 per cent increase over 2010.

"In terms of hotel investment activity, 2011 was among the top five years for the industry since Colliers started tracking transactions 25 years ago," said Alam Pirani, executive managing director with Colliers International Hotels. "This can largely be attributed to increased optimism stemming from the global economic recovery, as well as cross-border owners who capitalized on the strong Canadian dollar by offering rare and high-quality assets for sale."

Properties that changed hands last year included the Delta Vancouver Airport hotel, sold for $55 million; Montreal's Courtyard & Residence Inn by Marriott, for $39 million; and the Hilton Suites Winnipeg Airport for $25 million.