May 7, 2010
Last year, buying hotels just wasn’t cool.
According to a report by Colliers International, the Canadian hotel industry was slammed by the recession. Money spent on buying hotels fell 61% year-over-year and by 91% since the market peak in 2007.
Throughout all of 2009, buyers spent just $414 million purchasing 74 Canadian hotels paying an average price of $65,500 per room. Compare that to $4.58-billion spent on buying hotels at the market peak of 2007.
Alam Pirani, executive managing director with Colliers International Hotels, said the recession was to blame. In 2009, occupancy rates were down 8% and daily rates fell 12.3%.
You can check out the full Colliers International 2010 Canadian Hotel Investment Report Here.