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Canada Offers Significant Opportunity for Investment in Branded Hotels |
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Representation of internationally branded hotels is half compared to U.S. |
In a recent report on Canada, Jones Lang LaSalle Hotels analyzes the country's burgeoning hotel investment market and reveals that Canada remains vastly underexposed in branded hotel rooms compared to the U.S.
'Backed by outstanding operating results and increased cash flows, hotel transaction levels have soared over the past few years. Surprisingly, the Canadian hotel market is often overlooked by investors,' said Kristina Paider, senior vice president of research and marketing for Jones Lang LaSalle Hotels. The firm recently published FocusOn Canada: Hidden Value in a Resource-Rich Nation.
'Canada displays all the characteristics of a market with the potential for lucrative returns, as sizable as the country itself,' said Alan Tantleff, an executive vice president for Jones Lang LaSalle Hotels. Brands such as Courtyard by Marriott, Hampton Inn and Holiday Inn Express have proven to be successful in Canada, leading their markets in rate and occupancy. 'Despite their success, large international operating companies are far away from being as represented in Canada as they are in the U.S.,' said Tantleff.
A per capita comparison of the number of internationally branded hotels in Canada and the U.S. highlights the vast difference. The mid-scale branded segment is the most under-represented in Canada, with well under half the number of mid-scale brands per capita compared to the U.S. While the major budget brands show a wider distribution in Canada, their per capita representation is only two thirds what it is in the U.S. Canada has 28% fewer internationally branded full service hotels per capita than the U.S., exhibiting the smallest segmental gap.
Canada encompasses the infrastructure and strong demand generators necessary to support a thriving investment market while lacking in lodging supply and brand saturation as seen in many U.S. markets. 'There is a pronounced opportunity to develop the supply of branded hotels in Canada, particularly in mid-scale brands in secondary and tertiary markets,' said Tantleff.
To receive a copy of FocusOn Canada: Hidden Value in a Resource-Rich Nation, visit www.joneslanglasallehotels.com.
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide both the depth and breadth of advice required by hotel investors and hotel companies, through a robust and integrated local network. In 2007, Jones Lang LaSalle Hotels provided sale and purchase advice on 259 hotel transactions globally, representing a combined value of US$13.9 billion, a total of 54,763 hotel rooms in 84 cities. In addition advisory and valuation services were provided on 660 assignments globally for 182,048 rooms across more than 300 cities.
The global team comprises 236 hotel specialists, operating from 27 offices in 16 countries. The firm's advice is supported by a dedicated global research team, which produced over 45 publications in 2007 in addition to client research. Jones Lang LaSalle Hotels' services span the hospitality spectrum, from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Their services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels' clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). www.joneslanglasallehotels.com
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Jones Lang LaSalle Hotels is a world's leader in delivering exceptional, fully integrated real estate services dedicated to the hotel and tourism sector. |
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