Investment in Canadian hotels continued to rise in 2024 with transaction volume exceeding $2 billion – 17% above 2023 levels. Momentum was fuelled by a dynamic rotation of market players driving significant liquidity, cementing hotels as a leading alternative asset class within Canada’s commercial real estate (CRE) sector.

Investment in Canadian hotels continued to rise in 2024 with transaction volume exceeding $2 billion – 17% above 2023 levels. Momentum was fuelled by a dynamic rotation of market players driving significant liquidity, cementing hotels as a leading alternative asset class within Canada’s commercial real estate (CRE) sector.

Record hotel performance, attractive yields relative to core CRE classes, and improved debt conditions strengthened investor confidence in hotels. This bullish outlook drove heightened competition for quality assets, sustaining near-record average price per room metrics with predominantly private capital sources seizing the opportunity to transact.

2024 marked a meaningful return of institutional-grade portfolios and expanded major market investment opportunities which represented a substantial component of the market. However, the sector’s long- term foundation remains anchored in small to mid- sized transactions by Canadian owner-operators.

2025 Outlook

With a mix of domestic and foreign interest buoyed by strong fundamentals, the market outlook for hotel investments in Canada remains optimistic for 2025. There is a focus on quality, with investors prioritizing assets they anticipate will outperform in a dynamic market. Seller motivations range from opportunistic dispositions to strategic rationalization of portfolios.

Download the 2025 Canadian Hotel Investment Report for an in-depth review of 2024 transaction trends and the outlook for 2025.