SilverBirch Hotel & Resorts has retained Jones Lang LaSalle (JLL) to undertake a review that could result in a sale of its hotel portfolio.
The portfolio encompasses 25 hotels across Canada, including the Residence Inn by Marriott Vancouver Downtown and Double Tree by Hilton properties in Edmonton and Regina, and other extended-stay and full-service hotels under global flags such as Delta and Radisson.
“This offering provides investors the opportunity to own a quality, scalable hospitality real estate portfolio comprised of upscale full service hotels in Canada's leading cities, as well as premium select service hotels in some of Canada's most dynamic markets,” according to a JLL statement.
JLL senior vice-presidents Mark Sparrow and Luke Scheer are working with JLL’s hotels and hospitality group on the transaction. JLL expects wide response when the portfolio is listed.
"The stability of the Canadian market combined with the global appetite for quality real estate portfolios will drive local, North American and international interest, “ said Arthur Alder, CEO of JLL’s hotel and hospitality group.
"Working closely with the JLL team has given us a comprehensive understanding of the global market, and we're looking forward to the opportunities this will uncover," said Steve Giblin, president and CEO of SilverBirch Hotels & Resorts.
Silver Birch’s Vancouver property may be its portfolio’s prize.
In 2015, B.C. posted a total hotel property sales volume of $759 million, up 31% from a year earlier, and Vancouver is posting the highest per-room hotel prices in Canada.
Blockbuster Vancouver hotel transactions last year included the $180 million purchase of the Fairmont Hotel Vancouver and the $290 million sale of the Westin Bayshore, which pencilled out to $567,500 for each of its 511 rooms, reports Colliers International.
Vancouver has the highest per-key price ever for any market in Canada, according to Carrie Russell, managing director of North Vancouver-based HVS Canada, which tracks the hotel sector.
