Overall hotel deal activity slowed year-over-year; however, trading of traditional product remained strong with rebounding activity in Western Canada.
The first half of 2018 registered just over $800 million in lodging transactions nationally, pacing 10% below comparable levels in 2017 ($893 million) when excluding strategic1 and M&A transactions — a major component of activity in the first half of last year at $1.3 billion. Following an influx of foreign and institutional capital into hotel real estate from 2013 to 2017, there is a mix of private domestic buyers driving activity in 2018, supported by a strong hotel operating and economic landscape, motivated buyer pool and dynamic debt markets.
Despite a decrease in sizable investment sales in major markets which impacted overall volume, the first half saw a strengthening of volume in Western Canada and overall fluid trading in secondary and tertiary markets across the country. Colliers estimates full-year 2018 volume should range from $2.0 to $2.5 billion, declining from recent years on a moderation of available opportunities for sale in major urban centres.
Download the Mid-Year Transaction Report which includes an analysis of year-to-date trading activity.