Hotel Vancouver For Sale
Other
In more big news Friday, two of Canada’s most historic hotels—the Royal York Hotel in Toronto and Hotel Vancouver—were listed. The seller, Quebec pension fund Caisse de dépôt et placement du Québec, is scaling back its hotel business. Both properties are managed by Fairmont Hotels and Resorts. The Royal York was built in 1929, the Hotel Vancouver, on Burrard, was built in 1939. Hotel industry analyst Monique Rosszell from HVS says both properties will have plenty of suitors.
The probable buyers will emerge from private investment funds, a REIT, or an ownership group looking to supplement its national portfolio, or looking to enter the Canadian marketplace. (Or just someone who clicks the wrong button on Priceline.) “Certainly with the large Asian population and proximity to Asia, Vancouver will attract Asian interest, as real estate investments are very safe in spite of hotels being considered more risky than other asset classes,” Monique says. She points out that there are many Asian hotel brands, but only Shangri-La has made its debut in the Canadian marketplace
Given the strength of the market, this is a good time for Ivanhoe Cambridge (which manages the pension fund’s retail assets) to sell, she says. Not a surprise, she adds, since the company has been divesting its hotel portfolio outside of Quebec, recently selling a portfolio of 19 hotels in Europe. “The performance of these two hotels could both benefit from major capital upgrading, however, unless an owner is planning a long-term hold, such an investment may not be financially justified,” Monique says.
© 2013, Bisnow LLC