(Soure: The Toronto Star)
Market is ‘exercising extreme caution’ amid uncertain economy
Ontario hotels are feeling the brunt of an economic slowdown combined with a drop in tourist and business travel that has taken a bite out of the industry.
Hotel investment across Canada fell 77 per cent to $1.1 billion in 2008, according to a report yesterday by Colliers International Hotels.
“The market is exercising extreme caution given the economic uncertainty,” Bill Stone, executive managing director of Colliers International Hotels, said in an interview. “There was a preception we were heading into a distressed hotel environment.”
Ontario posted the lowest average price per room – an industry measure that reflects the cost of the property divided by the number of rooms – at $65,100, down 26 per cent from 2007.
Read Tony Wong’s full article “Hotel investment plunges 77%” in the Toronto Star (March 26 2009).
For further reading please see Buzzbuzzhome article “Recession puts skids on hotel construction” March 24 2009.