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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.
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