According to new data from Colliers International, there were an overall total of 10 hotels transacted over the $10 million threshold in Q.3 with Ontario and Alberta being particularly active accounting for 43 per cent and 36 per cent of quarterly volume, respectively. The over $1.7 billion in year-to-date (YTD) volume compares to $875 million which transacted over the same period in 2012. YTD transactions have exhibited good performance on a price per room basis, increasing to $136,000 from $107,000 last year, as did the average deal size, which increased to $20.8 million from $11 million year-over-year.
These metrics, and overall deal flow, however, have been highly influenced by the five-property Westin portfolio which accounts for approximately 44 per cent of transacted volume so far this year. Colliers anticipates the year will round out at over $2 billion in volume and expect the pace of hotel transaction activity to remain strong in Q.4 as a number of single asset offerings are under contract and scheduled to close during the quarter.
YTD 2013 transaction market highlights include:
- Year-to-date September 2013 transaction volume totalled over $1.7 billion, with 83 trades reported;
- Q3 transaction volume was catapulted by the sale of the five-property Westin Canadian Hotel Portfolio, which was the largest multi-property trade since 2007;
- Ontario accounted for 50 per cent of year-to-date volume with 41 trades and $639 million occurring in the GTA, surpassing Toronto’s full-year volume of $289 million in 2012.