Spain-based hotelier investing over $100 million in hotel development in downtown Toronto
TORONTO, January 28, 2019 – Cushman & Wakefield has arranged the sale and secured project financing to support the launch of Spain-based Riu Hotels & Resorts’ (Riu) urban hotel line, Riu Plaza, in downtown Toronto. Brokered by Curtis Gallagher, Vice President, Globe Hospitality – Canada, and Moshe Elyovich, Vice President, Global Hospitality - Canada, Riu will invest over $100 million into Toronto’s newest urban hotel.
The new mixed-use hotel, retail, and residential development will have two towers. One tower will be exclusively residential and the other will include the 350-guestroom hotel, meeting rooms, a gym, bar and restaurant, retail, and upper residential floors.
“Investor demand to acquire well-positioned hotel assets in downtown Toronto has been extremely competitive because there is great value in owning world-class assets in dynamic metropolitan cities that are experiencing remarkable growth,” said Curtis. “This was a significant opportunity for Riu to enter the Canadian market in one of the country’s strongest performing cities.”
This sale comes off a strong year for investor interest in Canadian commercial real estate assets. Canadian hotel investments in 2018 accounted for $1.3 billion, with Ontario assets comprising over 40% of the volume. Downtown Toronto Occupancy and Average Daily Rates are 78% and $248.27 respectively. Rounding out 2018, the hospitality sector in Canada saw 5.3% Revenue per Available Room (RevPAR) growth year-over-year. STR data used for downtown Toronto Occupancy Rate, Average Daily Rate, and RevPAR.
“The hotel sector has been experiencing exceptional performance in almost all key markets across Canada and our stable economy is favourably viewed by foreign investors,” adds Curtis. “I would expect to see strong performance and interest continuing throughout 2019.”
Slated to open in 2021, this will be the first Riu hotel in Canada.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.