View
4
Download
0
Category
Preview:
Citation preview
NO REST IN THE WEST
OPERATING PERFORMANCE
& TRANSACTION HIGHLIGHTS
FOR WESTERN CANADACARRIE
RUSSELL HVS
SCOTT
DUFFCBRE Hotels
Costa Rican Banana Crop Yield & SK RevPAR
Canada
Source: HVS/STR
RevPAR Change
2016 5.0%
2017F 7.6%
2018F 4.8%
2019F 2.8%
$74
$104
$112
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
RevPAR Growth – YTD 2017
+10.2%+3.7%
-5.9% +10.5%
Canada
RevPAR +7.4% (5.0%)
Source: STR
Supply Growth – YTD 2017
+0.4%+2.7%
+2.3% -0.1%
Canada
RevPAR +7.4% (5.0%)
Supply +0.8% (0.9%)
Source: STR
Pace of Supply Growth is Stable
(100)
400
900
1,400
1,900
2,400
2,900
3,400
3,900
4,400
In Construction Final Planning Planning
Luxury
Upper Upscale
Upscale
Upper Midscale
Economy
Unaffiliated
9,847 Rooms
68 Hotels
7,172 Rooms
60 Hotels
6,077 Rooms
51 Hotels
Source: STR
Growth in Supply has
shifted East
54%46%
West East
1%
z
24% z
Source: STR
Demand Growth – YTD 2017
+3.1%+4.0%
+1.1% +9.4%
Canada
RevPAR +7.4% (5.0%)
Supply +0.8% (0.9%)
Demand +2.9% (1.5%)
Source: STR
ADR Growth – YTD 2017
+7.3%+2.7%
-4.8% +0.9%
Canada
RevPAR +7.4% (5.0%)
Supply +0.8% (0.9%)
Demand +2.9% (1.5%)
ADR +5.2% (4.3%)
Source: STR
Canada / US Comparison – YTD 2017
Canada
RevPAR +7.4%
Supply +0.8%
Demand +2.9%
ADR +5.2%
US
RevPAR +2.6%
Supply +1.8%
Demand +2.5%
ADR +1.8%
67.8%CAD$159
67.4%USD$127
Source: STR
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Oct2017
Single Asset Transactions Portfolio and Entity Level Transactions
RevPAR Growth GDP Growth (Conference Board)
Source: CBRE Hotels; Conference Board of Canada
Hotel Investment Cycle
CAP RATE SURVEY Q3 – WESTERN CANADA (AND BEYOND)
Source: CBRE Limited
Source: CBRE Hotels
Geographic Distribution of Transaction
Volume
Source: CBRE Hotels
Deal Size by Region YTD October 2017
52% of Western Canada Transactions Had 50 Rooms or Less,
Compared To Only 30% in Central Canada
Average Deal Size Western YTD 2017
72 rooms / $14M ($194,400 / key)
Average Deal Size Western YTD 2016
93 rooms / $14M ($150,500 / key)
Average Deal Size Central YTD 2017
120 rooms / $21M ($175,400 / key)
Average Deal Size Central YTD 2016
120 rooms / $15M ($125,000 / key)
Source: CBRE Hotels
Buyer Profile
$71
$86 $88
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
WinnipegOutlook
• Exceptional economic
growth in 2017
• Economic slowdown
looms in 2018
• Benefiting from new
convention facilities
• New supply on the
horizon for 2019
• No major trades
RevPAR Change
2016 4.2%
2017F 8.0%
2018F 2.2%
2019F -0.4%
Source: HVS/ STR
$95
$105
$75 $75
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Saskatoon
Outlook
• Market appears to have hit
bottom in 2017
• Positive economic signs for 2018
• New supply to come in 2019
• No major trades
RevPAR Change
2016 -14.8%
2017F -5.3%
2018F 4.0%
2019F -2.9%
Source: HVS/ STR
$79
$99
$67
$72
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Regina
Outlook
• Nowhere to go but up
• Infrastructure spending and an
uptick in resource prices
improving economic conditions
• Supply pipeline has now cooled
• No major trades
RevPAR Change
2016 -5.8%
2017F -9.7%
2018F 4.0%
2019F 4.0%
Source: HVS/ STR
$80
$93
$70
$73
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Edmonton
Outlook
• Improvement in the resource
sector should contribute to
demand growth in 2018
• Most significant new supply
growth in the West expected to
continue in 2017 (5.8%), 2018
(2.2%) and 2019 (3.6%)
RevPAR Change
2016 -11.1%
2017F -5.5%
2018F 2.8%
2019F 1.5%
Source: HVS/ STR
EdmontonNew
• Hyatt Place Downtown (255)
• Holiday Inn Express (137)
• Candlewood Suites (77)
• TownePlace Suites (121)
• Hyatt Place (161)
• Wyndham Garden Inn Edmonton
Airport (150)
• Four Points Sherwood Park (135)
Under Construction
• Home2 Suites (120)
• Element Edmonton West (80)
• Four Points Edmonton West (141)
• Holiday Inn South (127)
• Fairfield Suites (135)
• TownePlace Suites Sherwood
Park (105)
Planned
• JW Marriott (346)
• Holiday Inn Express (104)
• Tru by Hilton (92)
• Westin Edmonton Gateway (200)
1,036 rooms 708 rooms 742 rooms
Source: HVS
Edmonton
Matrix Hotel / Metterra Hotel/
Varscona Hotel
Rooms:
Buyer:
Seller:
Price:
Per Room:
Cap Rate:
371
DSDL Investment Canada
Westcorp Inc.
$62.4 million
$173,000
~7.5%
Source: HVS
Edmonton
Holiday Inn Express Sherwood Park
Rooms:
Buyer:
Seller:
Price:
Per Room:
Cap Rate:
90
P&P Park Hotels
Temple Hotels
$9,600,000
$107,000
~5%
Source: HVS
$96
$84
$93
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
CalgaryOutlook
• Robust demand growth in 2017
signals the turn in the cycle
• Fastest growing economy in
Canada in 2017
• Strong demand growth expected
to off-set a number of new hotels
under construction
• Supply growth forecast at 3.5% in
2017, 4.4% in 2018, 4.5% in 2019
RevPAR Change
2016 -15.1%
2017F 0.7%
2018F 3.5%
2019F 5.9%
Source: HVS/ STR
CalgaryNew
• Hilton Garden Inn East Village
(198)
• Homewood Suites East Village
(122)
• Marriott Calgary Airport (318)
Under Construction
• ALT East Village (103)
• Element Calgary Airport (142)
• Holiday Inn Airport North (120)
• Holiday Inn Deerfoot (153)
• Westin Calgary Airport (250)
• Hawthorne Suites (112)
• Hyatt Place Calgary Airport (127)
• Residence Inn Downtown (390)
Planned
• Autograph Downtown (120)
• Courtyard Downtown (180)
• Fairfield Calgary North (100)
• ALT University (127)
• Hyatt Place (150)
638 rooms 1,397 rooms 677 rooms
Source: HVS
Calgary
Hilton Garden Inn Calgary Airport
Rooms:
Buyer:
Seller:
Price:
Per Room:
Cap Rate:
135
1984463 Alberta Ltd. (Jason So)
Goldencare Holdings Ltd.
$20,250,000
$150,000
5.9%
Source: HVS
$98
$180
$196
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Banff
Outlook
• One of the top growing markets in Canada –
8th year of an upswing
• Benefitting from low Canadian dollar and
desirability of Canada as a leisure and
meeting destination
• Canada 150 was a boost for the market
• Future ADR growth expected to moderate
• No new supply
RevPAR Change
2016 12.9%
2017F 12.4%
2018F 5.0%
2019F 4.0%
Source: HVS/ STR
$55
$81
$87
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Thompson / OkanaganOutlook
• Demand continues to grow from
a healthy regional economy and
tourism
• Supply growth is in check
• Rates have had two strong years
of growth
• Outlook for growth potential is
positive
RevPAR Change
2016 9.6%
2017F 7.4%
2018F 4.8%
2019F 3.0%
Source: HVS/ STR
Kelowna
Best Western Plus Kelowna Hotel & Suites
Rooms:
Buyer:
Seller:
Price:
Per Room:
Cap Rate:
176
SDP Lodging (Pomeroy Group
Salco Mgmt Ltd.
$23,165,000
$132,000
8% (on adjusted NOI)
Source: HVS
$105
$185
$205
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Vancouver DowntownOutlook
• Market continues to be strong in 2017 with
no signs of a correction
• 2018 is a stronger convention year
• Risks – economic challenges with
softwood lumber issues on the radar, and
unlikely to see LNG projects proceeding
• More talk about supply growth in mixed
use projects
• Cap rates are at an all time low
RevPAR Change
2016 11.5%
2017F 7.6%
2018F 6.0%
2019F 4.3%
Source: HVS/ STR
Downtown Vancouver
Rosewood Hotel Georgia
Rooms:
Buyer:
Seller:
Price:
Per Room:
Cap Rate:
156
Pacific Reach Properties
Delta Land
$145,000,000
$929,500
4.2%
Source: HVS
Downtown Vancouver
Robsonstrasse Hotel & Suites
Rooms:
Price:
Per Room:
48
$24,780,000
$516,250
Source: HVS
$75
$128
$142
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Vancouver Airport
Outlook
• ADR increases driving growth in 2017
• Airport traffic up 8% YTD
• No new hotels under construction RevPAR Change
2016 13.1%
2017F 13.9%
2018F 8.6%
2019F 2.7%
Source: HVS/ STR
Langley / Surrey
Ramada Langley / Surrey
Rooms:
Buyer:
Seller:
Price:
Per Room:
Cap Rate:
100
Private Investor
Johnrose Hospitality
$14,900,000
$179,500
5.4%
Source: HVS
$79
$108
$117
$132
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
F
20
18
F
20
19
F
Victoria
Outlook
• Most aggressive RevPAR growth
projections in Western Canada
• Harbour Towers closing – 180 rooms –
November 2017
• Strong US/International Demand
• Improved product with the $60M
renovation to The Fairmont Empress
RevPAR Change
2016 11.5%
2017F 8.1%
2018F 8.7%
2019F 4.0%
Source: HVS/ STR
THANK YOU TO OUR HOST
THANK YOU TO ALL OUR SPONSORS
THANK YOU TO ALL OUR SPEAKERS
IDEAS FOR 2018 CONFERENCE?
Big Picture Conferences appreciates
your feedback, please participate
in the post-conference survey
and share your ideas for the 2018
Conference.
We value your suggestions!
PRODUCED BY
Recommended