Colliers International Hotels Q4 2011 INNvestment Canada

Conducted in November 2011 by Colliers and the Ted Rogers School of Hospitality and Tourism Management at Ryerson University, the survey was designed to act as a benchmark to capture shifts in Canadian hotel investment sentiment.

Sentiment was strong across the board in our latest survey. With the rising Canadian hotel transaction market in 2011 and an overall market that experienced strong improvements across all metrics from the year prior, our latest INNvestment Canada issue provides readers with a glimpse of current and go-forward investor intentions, cap rate expectations, industry outlook and overall viewpoints on the financing and economic environment.

With nearly $1.1 billion in hotel transaction activity across the country in 2011, the year ended as the highest year in volume since 2007 and the fifth highest year on record for volume since we began tracking trends in 1985. The overall transaction market saw strong improvements across all metrics. Complete details will be released in our 2012 Canadian Hotel Investment Report which will be published prior to the end of Q1 2012.

highlights of the survey include:

- 42% of investors are seeking to buy in 2012, up from 37% that gave acquisition signals last year.

- More investors plan to build new properties, with 26% of respondents describing their primary intentions as build, versus 19% last year.

- Almost 80% of respondents are optimistic on the performance of the overall Canadian economy over the next three to five years, while close to 50% are still weary of near-term volatility.

- Investors favour hotel assets in the 100-175 room range with over 60% of respondents indicating this in their response.

- Downtown urban markets are hot markets for investors. Calgary, Edmonton, the Greater Toronto Area and Ottawa were the most desired markets of interest.

- 80% of those surveyed reported their cost of debt either decreased or stayed the same in the past 12 months. 


Click here to access the Colliers International Hotels Q4 2011 INNvestment Canada newsletter

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