The five properties are Marriott Toronto Bloor-Yorkville (285 rooms), Renaissance Toronto Hotel Downtown (348 rooms), Renaissance Toronto Airport Hotel (249 rooms), Marriott Ottawa (480 rooms), and the Richmond Hotel & Convention Centre (389 rooms). A couple of the assets in the portfolio have been built with service capabilities that exceed the number of rooms on the property because the properties include excess land for developing additional hotel rooms.
Rob Stiles of Sonnenblick Goldman tells GlobeSt.com the package represents the single largest sale of urban hotel assets unencumbered by management in the history of Canada. As such, it should solicit a much larger pool of buyers than would a portfolio with certain management requirements.
Given the situation, Stiles declined to estimate the value of the portfolio, which is coming to market without an asking price. Local hospitality brokers tell GlobeSt.com the property could sell for between $300 million and $350 million in Canada dollars, which translates to between US $255 million and US $298 million. A bid deadline has not yet been set, in part due to the need of potential buyers to inspect all five properties, Stiles says.
The Marriott Toronto Bloor-Yorkville is the only four-star branded property in the Bloor-Yorkville market. The Renaissance Toronto Hotel Downtown is fully integrated with a major league sports and entertainment venue, Rogers Centre, the 60,000-seat home of the Toronto Blue Jays.
The Renaissance Toronto Airport Hotel reopened in April 2004 following an extensive reconstruction and renovation. The Marriott Ottawa is connected to Place de Ville, the largest office complex in the city. The Richmond Hotel & Convention Centre is within 10 minutes of the Vancouver International Airport.
Hotel sales in Canada in 2006 were expected to hit a record $2.9 billion in 2006. The total would be $1 billion more than the previous high, set in 2005.
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