Low Canadian dollar, high returns driving hotel sales volumesApril 18, 2017 7:21 pm
Investors are taking advantage of hotels up for sale in prime locations across Western Canada, but buyers in smaller regions with limited supply are also benefitting from what is being considered a hot’ investment market.
The hotel market has been revving up steadily since 2011, according to a new report by Colliers International.
Colliers’ attributes the sector’s high sales activity and rising value to Canada’s falling dollar, which has spurred an increase in both foreign and local investment in Canada and away from the United States. Foreign buyers contributed 67 per cent of all hotel transaction value in Canada in 2016.
Carrie Russell, managing director of global hotel valuation firm HVS International in North Vancouver, agrees the low Canadian dollar has played a part in bolstering transactions, but it’s only one part of a buyer-friendly situation that’s made investing in hotels particularly favourable recently, to the tune of $4.1 billion in transactions nationally.
Categorized in: Western Investor