Canadian Market Showing Signs Of Recovery

CANADA— The Canadian hospitality market is showing signs of recovery, according to Colliers International Hotels. Canadian RevPAR showed solid increases, by some 5% in 2002, stated Collier analysts. Total transaction volume reached an estimated $540 million with the completion of 48 hotel sales over $1 million, the analysts reported. This was a decline of almost 18% from the prior year when $656 million in transactions were completed. Most of the activity occurred in the second and third quarters, accounting for 36% and 32% of the annual total, respectively, Colliers concluded. Although strategic hotel acquisitions represented about 66% of total volume, they accounted for only 13% of trades completed. While strategic trades accounted for the majority of transaction volume in 2002, they did not represent the typical hotel transaction,” analysts observed. Approximately 63% of the trades in 2002 involved properties of less than 100 rooms with transaction prices under $5 million. Additionally, 60% of trades completed were at a price per room of between $30,000 and $69,000, with 8% falling below this range, 15% between $70,000 and $99,000, and 17% at $100,000 or more,” Colliers stated.