The Canadian Hospitality market has completed another year under the shadow of the COVID-19 pandemic. Throughout the year, the hospitality industry was tested, but some optimistic trends were observed as year-end approached. Government support programs have provided relief to hoteliers that have been struggling through these trying times. Hotel transaction sales volume in Canada’s six major markets totaled approximately $712 million in 2021 – up 124% compared with 2020, and the highest annual result since $726 million in assets changed hands in 2018.

There are a variety of reasons for this bump in transaction velocity, such as some investors using capital that had been allocated for 2020 but was not spent, lenders being proactive on non-performing assets which needed to be liquidated, and continued change-of-use opportunities. A large volume of smaller assets was sold across the country (there were 92 trades in 2021 compared with 75 in 2018, reflecting averages of $7.7 million and $9.6 million per trade, respectively).