GHN Thought Leader
Executive Managing Director, Colliers International Hotels
GlobalHotelNetwork.com: Where do you see the best opportunities for hotel investment or development?
Alam Pirani: Transaction volume for Canadian hotel real estate reached $1.5 billion in 2018, the 8th highest on record as measured over the past 30 years. Despite a decline in volume from recent years, the appetite for lodging investment remains high with transaction volume tempered as a result of limited opportunities. We expect another $1.5-$2.0 billion of deal volume in 2019, fueled by an up-tick in large single asset and portfolio deals, as well as a healthy mix of mid-market assets in secondary and tertiary markets expected to close this year.
When it comes to geographic focus, buyers will continue to seek investment opportunities in urban and high-end suburban markets such as Toronto, Vancouver and Montreal. However, opportunistic buyers will look almost anywhere in Canada. With the existing competitive landscape of more buyers than sellers, we will continue to see buyers cast a wider net, expanding efforts from top-tier cities to secondary and tertiary markets like Kitchener-Waterloo, Windsor, Sudbury, London, Quebec City, Moncton, Alberta Mountain Resorts, Kelowna and Victoria, which are now providing superior returns compared to the traditionally strong markets in Vancouver and Toronto.