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Showing posts for category Hospitality Sector (Back to Index)
Showing posts for category Hospitality Sector (Back to Index)
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BCLC Approves New Gambling and Entertainment Facility in Delta, B.C.
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(Posted on Nov 24, 2018 at 02:11AM by Michelle Bogle)
Earlier this month, the British Columbia Lottery Corporation (BCLC) announced the approval of a new gambling and entertainment facility in Delta, B.C.
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Cascades Casino Delta, which will be operated by Gateway Casinos & Entertainment Limited, will include a hotel, restaurants, meeting space and a casino with approximately 500 slot machines, 24 table games and up to six electronic table games. According to a press release, the BCLC said its approval follows extensive reviews of the market opportunity, business case, health impacts and municipal approval process to ensure that the project meets legislated requirements under the Gaming Control Act.
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The design of the casino reflects feedback from the public, which was received through ongoing community engagement. But, not all parties have been on board with the project, including the City of Richmond, which filed an objection with the BCLC, stating crime, traffic and transportation concerns. This prompted the BCLC's legislative requirement to implement a non-binding dispute resolution process and appoint an independent, third-party mediator to address issues raised in the objection. BCLC received Mr. Simon Margolis’ report on October 15, 2018, which concluded that the City of Richmond did not provide supporting documentation to substantiate its concerns. This information led the BCLC to finalize its approval of the project.
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Construction at the Delta Town & Country Inn site near the Massey Tunnel will begin in early 2019, and the casino is expected to open in mid-2020.
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Hospitality News: Johnny Rockets to Open Second Vancouver Location
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(Posted on Mar 20, 2017 at 04:35PM by Michelle Bogle)
Earlier last month, JR Canada Restaurant Group Ltd. announced that the company will be opening its fourth Johnny Rockets Restaurant in British Columbia – a second Vancouver location on the popular West Broadway corridor at the intersection of West Broadway and Oak Street, close to the Vancouver General Hospital.Â
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In a press release, Lewis Gelmon, President and CEO of JR Canada Restaurant Group, stated, "This will be the largest Johnny Rockets in Western Canada to date at just under 2,600 square feet utilizing the new restaurant look and feel of Diner 2.0, featuring our high-efficiency kitchen. 988 West Broadway is a state-of-the-art building adhering to LEED Gold standards, which made this location very attractive."
The popular burger chain will be part of the development project at 988 West Broadway, which will also include up to 85,000 square feet of premium commercial space with main floor retail and nine floors of office space. It is slated to be completed by the fall of this year.
The popular burger chain will be part of the development project at 988 West Broadway, which will also include up to 85,000 square feet of premium commercial space with main floor retail and nine floors of office space. It is slated to be completed by the fall of this year.
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This latest Johnny Rockets restaurant also joins other B.C. locations in Victoria and Downtown Vancouver on Nelson Street.Â
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For more news and insight into Vancouver’s hospitality asset class or for information regarding investment opportunities, please contact Marcus & Millichap to speak with a commercial real estate advisor.
Investors Eye Vancouver’s Hospitality Assets as Hotel Revenues Continue to Climb
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(Posted on Oct 18, 2016 at 05:49PM by Michelle Bogle)
Over the last year, British Columbia has become the top spot in Western Canada for travellers from the U.S. and beyond. Visitors are being lured to the province by the low Canadian dollar, which has generated increased demand for hotel rooms and healthy profits for operators. Â
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In fact, according to Business in Vancouver, downtown Vancouver hotels are exceeding expectations for revenue growth. Average daily rates rose from $201 to $221 a night over the past year and will likely rise again in 2017 to $235 a night. Currently, occupancies are sitting in the range of 79%.Â
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As a result, investors are keeping a close watch on hospitality opportunities since they offer a safe haven for their capital and boast consistent returns.Â
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Among the most notable recent transaction was Oxford Properties Group’s sale of the Fairmont Vancouver Airport to InnVest REIT – a deal that officially closed last month for $90 million. If more transactions follow suit, the outlook for Vancouver’s hotel market can only continue to remain positive into the upcoming new year.
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At Marcus & Millichap Vancouver, we currently have a number of active commercial real estate listings for hospitality assets across B.C. To view these properties, please visit our Property Search portal for more information or contact our office to speak with a broker.
City of North Vancouver Green Lights Waterfront Hotel in the Shipyards District
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(Posted on Aug 31, 2016 at 01:00PM by Michelle Bogle)
The City of North Vancouver has given its go-ahead for a waterfront hotel as part of an ambitious mixed-use development on the final parcel in the city-owned Shipyards District.Â
Known as Lot 5, the parcel is slated to become an interactive, year-round centre that will feature the Lower Mainland’s largest outdoor skating rink in the winter and a water play area in the summer, covered by a retractable roof. In addition to the hotel, the site will also offer 64,000sq. ft. of commercial space, including a restaurant and other retail spaces.
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In recent months, the site has undergone environmental remediation and has been leveled for construction. Building is expected to begin on the site early next year, with the centre slated to open in late 2018. Quay Property Management Corp. has been selected by the city to develop the $35-million project.
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As the development prepares to break ground, QPM is in the process of selecting a hotel operator for the building. The small hotel is expected to host 60 to 70 rooms and offer a higher-end experience to visitors.
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As for the commercial space, it will feature mixed-use retail, restaurants and various commercial uses, which will bring the waterfront site to life in a number of exciting ways – a space that has sat largely unused since 1992 when industrial operations ceased on the land.
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“This project is going to provide the community with a new level of interaction with the City’s waterfront, and will be providing new businesses with a truly unique environment to operate in,†says Gary Mathiesen, President of QMP. “The result will be a world-class destination for year-round activity in the Shipyards. We are honoured to be a part of the continued growth of this vibrant community.â€
For more information regarding this development, including project renderings, please click here.
To stay abreast of other commercial real estate investment opportunities and developments across the Lower Mainland, please contact our Vancouver office to speak with a broker. You can also view our featured listings by clicking here.
Coast Hotel Chain Sold to Japanese Hospitality Firm for $210 Million
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(Posted on Aug 12, 2016 at 01:00PM by Michelle Bogle)
APA Group, Japan’s largest hospitality firm, has announced that it will buy Vancouver-headquartered Coast Hotels for $210 million from Okabe Co. Ltd., another Tokyo-based corporation.
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The sale is being made by way of a share transfer agreement, which was completed at the end of July and is expected to close in early September.Â
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In total, Coast Hotels has 36 properties under its banner in North America, including landmark properties, such as Vancouver’s Coast Coal Harbour Hotel, the Benson Hotel in Portland and Waimea Plantation Cottages in Hawaii.Â
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The purchase of Coast represents a bigger foray into the North American market for APA Group. They emerged into the U.S. just nine months ago by striking a partnership with New Jersey-based Friendwell Group of Companies. Its first hotel under that partnership is the 200-room APA Hotel Woodbridge in Metropark, N.J., which reopened in June following major renovations.
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For Vancouver, the outlook for our hospitality market continues to stay positive. Overall, hotels are expected to remain a thriving asset class for the rest of 2016, thanks to our awareness on the global scene for attracting travelers (individual, business and group) and cross-border investors.
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For more information regarding hospitality asset opportunities within Metro Vancouver, please contact our office to speak to our skilled team of advisors. You can also view our list of featured properties by clicking here.
A Closer Look into B.C.’s Hot Hotel Market
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(Posted on Jul 13, 2016 at 07:01PM by Michelle Bogle)
As we embark on the second-half of 2016, the outlook for British Columbia’s hotel industry is looking very optimistic. In fact, a strong performance in the first half of the year has many commercial real estate investors eyeing Vancouver’s hospitality market.
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In Q1 2016, high room rates and occupancy figures became the norm in Vancouver, where the revenue per available room rose an impressive 16%. Prior to that, B.C. hotel profits were up 28% in 2015 and are expected to grow an additional 13% in 2016.Â
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Hotel investment continues to concentrate within Metro Vancouver with prices for downtown assets reaching record levels, like the $548,000 per room price paid for the Westin Bayshore in Q4 2015.Â
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Favourable foreign exchange has been a key driver of B.C.’s hospitality market, especially as many film and television production houses have descended upon Metro Vancouver. The low dollar has also encouraged leisure travel from neighbouring states, which has had a direct impact on the hotel industry.
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In 2016, more visitors are expected from abroad from traditional markets, such as the Unites States, the United Kingdom, Australia and Germany, with continued growing interest from China.
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With this expected influx of visitors comes a stronger demand for hotels in downtown Vancouver and the Richmond/Airport areas. Burnaby, Surrey and Langley will also benefit from higher room rates as the regional average increases.Â
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This is also promising news for tourist destinations within the Sea-to-Sky corridor, including Whistler and Blackcomb, which is undergoing a major $345 million renaissance project.Â
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To learn more about commercial real estate opportunities within Vancouver’s hospitality market, please contact our office to speak with our team of skilled advisors. You can also view featured property listings by clicking here.
Vancouver’s Hyatt Regency Included in $2.1 Billion Deal
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(Posted on May 20, 2016 at 01:00PM by Michelle Bogle)
BlueSky Hotels & Resorts Inc., a private company backed by capital from Hong Kong, has agreed to buy Toronto-based InnVest Real Estate Investment Trust in an $2.1 billion all-cash deal.Vancouver’s Hyatt Regency is one of the hotels included in the sale.
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The deal will give BlueSky one of Canada’s largest hotel portfolios, which includes 109 properties across the country and a stake in some of the most historic hotels. InnVest REIT also holds a 50% stake in Choice Hotels Canada Inc., which is one of the biggest franchisers of hotels in the nation.
The BlueSky transaction is expected to close in the third quarter of this year.
The BlueSky transaction is expected to close in the third quarter of this year.
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Bluesky is the latest Asian firm to swoop into the North American hotel industry. A unit of China’s HNA Group Co. agreed to buy Carlson Hotels Inc. in April, gaining popular banners, such as Radisson and Park Plaza.Â
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Beijing-based Anbang Insurance Group Co. also made an unexpected $14 billion bid for Starwood Hotels & Resorts Worldwide Inc. in March; however, they walked way before the deal was finalized.Â
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Foreign investors are growing increasingly interested in Canada’s hospitality sector, thanks to the low dollar and the booming hotel industry, which has seen record-breaking revenues per available room each year – from $92 in 2015 to an expected $98 by 2017. Asian capital will undoubtedly be a driving force over the next number of years.Â
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For more information on Vancouver’s hospitality asset class, please contact our office to speak with our skilled team of advisors.
Vancouver Crushes the Rest of Canada with the Highest Hotel Prices
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(Posted on Apr 16, 2016 at 01:00PM by Michelle Bogle)
British Columbia’s hotel market is hot right now – so hot, that it’s putting other provinces to shame with its nation-leading, strong transaction activity of $612 million – a property sales spike of 216%.Â
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Our province is also home to the highest “per-key†prices in the country with an average sale price of $269,400 per room. This figure is more than doubled that of neighbouring Alberta.
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In 2015 alone, there were a number of record breaking hotel transactions – including the $180 million purchase of the Fairmont Hotel Vancouver and the $290 million sale of the Westin Bayshore. The Bayshore transaction is unique, as it is widely considered a land transaction. The hotel and its six-acre Coal Harbour site were bought by residential developer Concord Pacific.
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What is contributing to this success? For one, asset appreciation has played a large role with Vancouver’s real estate values experiencing rapid growth. The lower Canadian dollar has also increased tourism within Vancouver, which has created more demand within the hospitality asset class.
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The outlook for the Vancouver hotel market continues to stay positive. Overall, hotels will remain a thriving asset class in 2016, thanks to Canada’s awareness on the global scale for attracting travelers (individual, business and group) and the interest of cross-border investors, who are honing in on major urban markets.
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For more information on Vancouver’s hospitality asset class, please contact our office to speak to our skilled team of advisors.
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