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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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Increased Tourism Creates Healthy Canadian Hospitality Market
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(Posted on Nov 14, 2018 at 08:27PM by Michelle Bogle)
According to a recent Marcus & Millichap Hospitality Research Canada Report (Second Half 2018), strong tourism rates are benefiting the hotel property market across Canada as travellers book multi-day hotel rentals for their stays.Â
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During the first five months of the year, trips of one or more nights from non-residents rose one percent from the same time last year, which is a record 5.9 million international visitors. Tourism from China is also on a steady incline, increasing 14.8 percent during this same time frame. With Canada’s new tourism campaign in place, these numbers are expected to double the amount of Chinese visitors to the country and boost international tourists by 30 percent in 2021.
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In Vancouver, new regulations for short-term rentals is also expected to aid hotels. Effective September 1, 2018, homeowners can only put their primary residence on sites like Airbnb and they must have a $49 annual license to list their properties. This has resulted in a drastic decrease in the number of Airbnb listings from 6,600 in April to 3,700.Â
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With increased interest from international travellers and regulations in place to limit short-term rentals, it’s a great time to invest in a hospitality or hotel asset in Canada. To learn more about opportunities in Vancouver and surrounding regions, please contact our office to speak with a Marcus & Millichap commercial real estate advisor.
Foreign Investors to Buy Vancouver’s Rosewood Hotel Georgia for $145 Million
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(Posted on Mar 7, 2017 at 02:35AM by Michelle Bogle)
A deal has been inked to sell one of Vancouver’s oldest and most historic hotels. Established in 1927, the Rosewood Hotel Georgia will be sold for $145 million in a joint-venture of two Hong Kong-based firms, owned by two brothers – Able Shine Enterprises and Magnificent Hotel Investments.Â
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The investors are buying the hotel from Vancouver-based Delta Land Development Limited, but will continue to be managed by Dallas-based Rosewood Hotels & Resorts.
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The Rosewood Hotel Georgia will join Magnificent Hotel’s portfolio of other hospitality assets, including five Best Westerns and other hotels in Hong Kong and Shanghai. Last June (post-Brexit), the company made international news when its subsidiary purchased the Travelodge London Kings Cross Royal Scot Hotel for 70 million pounds.
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An update on Magnificent’s website describes the recent acquisition of the Rosewood Hotel Georgia as: “An excellent opportunity to enter the vibrant Vancouver real estate and hotel market at a nearly construction-replacement cost, for a new and most prestigious building on the most prominent address of the city centre with an initial yield of 4%.â€Â In 2011, the historic landmark completed a four-year, $120-million restoration that preserved the heritage facade and expanded the rooms inside. It was also brought under new management.Â
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As we continue into 2017, the outlook for Vancouver’s hospitality market continues to stay positive. Overall, hotels are expected to remain a thriving asset class, thanks to our awareness on the global scene for attracting travellers (individual, business and group) and cross-border investors.
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For more information regarding hospitality asset opportunities across the Lower Mainland, please contact our office to speak to our skilled team of advisors. You can also view our list of featured properties by clicking here.
Major Plans on “The Rise†for Vernon B.C. Golf Course
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(Posted on Nov 26, 2016 at 02:00PM by Michelle Bogle)
Two companies at The Rise, an exclusive golfing community in Vernon, B.C., have announced plans to create a destination resort.
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The Rise Golf has purchased 25 acres of land adjoining the golf course in order to create a state-of-the-art practice facility and a clubhouse, which is set to open later next year. The land was purchased from The Rise Development Ltd.
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“It’s been a great year at The Rise Golf. We’ve been working to set a solid foundation,†said general manager Ian Renton. “We’re grounded in sustainability, a beautiful and dynamic landscape and innovation. Now, with this new land and a shared vision with The Rise Development, we’re going to expand on that foundation — move forward and create a true destination.â€
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Next to the newly purchased land, the development group is currently building a 36-villa subdivision called Belago. “We’re curating the entire experience,†said Bruce McRitchie, board secretary. “It’s a distinctive place where the sky, land and lake meet. People will want to visit and won’t want to leave. It’s an exciting time for The Rise Development group, The Rise Golf and for the City of Vernon.â€Â
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Meanwhile, a 543-acre parcel of land at The Rise remains up for sale for $24 million by its Calgary owners. It is designated for residential and commercial development and is proving to be a hot listing, especially as demand for real estate in the area continues to increase.
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To learn more, please contact our Vancouver office to speak with a commercial real estate broker.
Victoria Looking to Regulate Vacation Rentals
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(Posted on Jun 13, 2016 at 06:13PM by Michelle Bogle)
The City of Victoria could soon be turning its magnifying glass towards short-term vacation rentals.The intent is to shine a light on the city’s “invisible†hotel industry and subject these rentals to the same provincial taxes and rules as traditional hotels, as well as ensuring that B.C. Assessment Authority designations reflect the commercial nature of the rental use.
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In British Columbia, an 8% provincial sales tax is applied on rentals by hotels, motels, cottages, inns or resorts with four or more rental units. In addition, many municipalities, including Victoria, charge a 2% tax that is used to promote local tourism.Â
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These undercover “stealth hotels†currently do not have to charge those taxes and their property taxes are far less than a commercial property. But, that could all change, as early as this fall.
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City officials estimate that 200 to 300 short-term vacation rentals are operating in Victoria. Many of these rentals are also operating in residential areas where commercial operations are not allowed. With websites that promote home sharing, like Airbnb and Expedia, this market of short-term vacation rentals is not going away anytime soon. Rather, it’s going to continue to grow.Â
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To date, there are approximately 27,000 rental-housing units in Victoria with a vacancy rate of 0.6%. If all of the estimated short-term vacation rentals found their way back into the market pool, city officials figure that the vacancy rate would increase to between 1.2 and 1.7%.
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At Marcus & Millichap Vancouver, our advisors are keeping a close watch on B.C.’s hospitality industry. For more information regarding this asset class, please contact us for the latest insight and commercial real estate listings.
Since the 2010 Olympics, Vancouver’s hospitality industry has picked up steam by focusing on new hotel builds and retrofits of existing buildings.In fact, approximately 75% of projects in Vancouver are retrofits with one of the most notable being Vancouver’s Fairmont Waterfront, which recently underwent a major renovation.
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And, while Vancouver’s hotel industry still falls behind larger markets, such as Toronto and New York, the sector is gaining ground by offering travelers a more personalized experience.Â
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Gone are the days of cookie-cutter hotels with one-size-fits-all approaches. Today, more brands and developers, such as Marriott, are zoning in and specifically catering to different demographics – from young travelers to business executives. They are learning from niche, boutique hotels and online hospitality providers, like Airbnb, to create unforgettable experiences for travelers that are unique, memorable and downright dazzling.Â
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This is a move in the right direction for the Vancouver hospitality industry, which has the potential for great growth over the coming years. It’s opening the commercial real estate doors as more big name brands want to capitalize on the opportunity to grow the hotel business in a world class city. The low Canadian dollar, increased occupancy rates and high number of conventions also make Vancouver a highly desirable market.
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To learn more about hospitality assets in Vancouver’s commercial real estate sector, please contact our Vancouver office to speak with one of our knowledgeable advisors.Â
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