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Canada  + Alberta & Prairies + Cross Border News + Ontario  + Hospitality  | 
Hotel sales dollar volume in major Canadian markets rose 38% in 2023, says Avison Young in a national hotels report.

Canadian Hotel Investments Up 38%

Hotel sales dollar volume in major Canadian markets rose 38% in 2023 as the sector continued to recover in the wake of the COVID-19 pandemic, says Avison Young.

Investors completed $780 million worth of transactions in 2023, the company said in a national hotels review and outlook. That total was up 17% from pre-pandemic levels.

Notable deals included the sales of the Rimrock Resort Hotel in Banff, Alta., for $170 million, or $510,500 per room; the Hazelton in Toronto for $105 million, or $1.4 million per room; and the Ottawa Marriott for $86.5 million, or $176,900 per room.

‘Despite economic challenges, including the health crisis of COVID-19, the hotel market displayed remarkable resilience, with 49 transactions occurring, mirroring the number of transactions recorded in 2022,” said Toronto-based Avison Young.

The resurgence in hotel transaction volume reflects increased demand for the asset class, the company added. The increase was accomplished despite economic pressures that included a challenging debt financing market and lingering effects of the pandemic

The sector gained from a surge in leisure travel and small local group demand surpassing pre-pandemic levels.

Growth is anticipated again in 2024, but the market may move toward more normal conditions, according to Avison Young.

“Looking ahead, this positive trend underscores the enduring appeal and resilience of the Canadian hotel market, positioning it for further growth and opportunity in the coming years,” said Avison Young in its report.

The report was produced by Avison Young’s Canadian hospitality real estate team, led by Principal Curtis Gallagher.

Photo: Germain Hotels


Inside The Story

Curtis GallagherAvison Young

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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