Innsights
Sukhdev Toor, Manga Hotels, and a family vision for the future
FEATURE PROFILE: Feature from the FALL 2024 ISSUE of STAY Magazine
Intelligence
Colliers Hotels releases market update for Q1 2024
Colliers Hotels has released its Q1 2024 INNvestment Canada Hotel Report.
Canadian hotel investment activity totaled approximately $750 million in Q1 2024, up more than twofold from the same period last year with the closing of major portfolio and single asset transactions.
Approximately $750 million of hotel transactions were tracked across Canada in Q1 2024, up more than twofold from the same period last year:
- 60 per cent of volume was attributed to portfolio transactions spanning 19 hotels, including a $410 million disposition by Morguard Corporation to InnVest Hotels and Manga Hotel Group by way of sub-portfolios.
- There were 28 single-asset transactions recorded during the quarter, including several large full-service hotels. These included the 340-key Fairmont Winnipeg, which was acquired by Lombard Hospitality, a subsidiary of James Richardson & Sons Ltd., and the 236-key Sheraton Ottawa, which was sold to Sunray Group.
- Reflecting the higher concentration of sales in major markets, price per room metrics for the quarter averaged a healthy $168,000, up 12 per cent year-over-year.
- Just over 75 per cent of national volume was driven by sales in Eastern Canada with Ontario driving the lion’s share at just over 60 per cent ($467M).
The most significant measure announced in the 2024 Federal Budget impacting the real estate industry is the increase in the capital gains inclusion rate from 50 per cent to 66.67 per cent. The new rate applies to all capital gains realized by corporations and trusts on or after June 25th, 2024, and on the portion of capital gains realized on or after June 25th, 2024 that exceed $250,000 for individuals.
