Canadian hotels soon to be foreign-owned
About 24 percent of the $794-million that was invested in Canadian hotels during the first six months of this year was foreign money, compared to about 7 percent of the $650-million worth of hotel deals done during the first half of 2012, according to real estate service firm CBRE.
"Historically Canadian investors bought Canadian hotels, by and large, and this is one of the first substantive breakout years. We've seen a real spike, in the last eight to 12 weeks specifically, of activity," said Bill Stone, an executive vice-president at CBRE.
A number of Canadian real estate investment trusts are selling hotel properties, while traditional hotel investment companies are the largest buyer this year.
"We're experiencing a tremendous amount of hotel investment activity, and this will probably be the biggest year on record in terms of single-asset or small-porfolio transactions. Unlike 2006 and 2007, where there were the big M&A deals, this is a very, very active year for one-off hotels or small portfolios," added Mr. Stone. ■