The sale of four new hotels in Winnipeg last year – and construction starting on a dozen more – is evidence that the city is one of the top hotel markets in Canada, according to the 2012 Canadian Hotel Investment Report from Colliers International Hotels.
Colliers said buyers are being drawn to Winnipeg because of the resilience and stability of the economy, the solid corporate base, a healthy convention business and existing and future draws such as the Winnipeg Jets hockey team and the Canadian Museum for Human Rights.
"These are all demand generators that will bring people into the city, and that's what gives investors confidence," said Alam Pirani of Colliers International Hotels.
Pirani cited the current hotel building boom underway in Manitoba as further proof of the confidence investors have in the local market. More than a dozen new hotel projects have been announced in the past year, including new builds and the redevelopment of existing properties.
"That is an indication investors feel it's a very stable market," he added.
The Colliers report said 2011was a strong year for hotel deals with four sales in Winnipeg for a total value of $39 million.
The Winnipeg hotel sales included the 48-room Howard Johnson Express Inn Winnipeg West, which sold for $4.5 million; the 14-room Stock Exchange Hotel which sold for $2.2 million; and the 160-room Hilton Suites Winnipeg Airport, which sold for $25 million.
The buyers were both local and out-of-province institutional investors.
