Toronto-based InnVest Real Estate Investment Trust (TSX:INN.UN) has bought Vancouver’s 644-room Hyatt Regency Hotel for $140 million, the equivalent of $217,000 per room.
Following completion of the sale, a Hyatt Hotels Corp. affiliate will continue to manage the hotel under a new long-term management contract. The sale is expected to close this month.
Built in 1973, the Hyatt is located at the northwest corner of Burrard and West Georgia streets and has some of the city’s largest standard guest rooms and meeting space.
Carrie Russell, managing director of hotel industry analyst firm HVS International, said there has been increased investor interest this year in downtown Vancouver hotel properties. She noted that so far in 2014 the Days Inn and Best Western Sands hotels have sold, both to investors from China. Also a “good portion” of the hotel-condos in the Westin Grand hotel has reportedly been sold to a single investor, Russell added.
Last week, Daniel Fournier, chairman and CEO of Ivanhoe Cambridge told BIV that its Fairmont Hotel Vancouver is close to a sale under a bid process that is now closed.
Russell is not surprised by the hotel sales action.
“Vancouver is heading into a very strong convention year, Revpar [revenue per available room] is very high, and there has been little new construction. The outlook for the Vancouver hotel market is very positive.”
