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Starwood Selling 3 Westin Hotels in Prospective $525 Million Deal

Hotels in Ottawa, Calgary and Edmonton on Block With Sellers Searching For $475 Million to $525 Million From Sale

Imagined: The Westin Ottawa, among 3 hotels being noted by Starwood Capital Group.Starwood Capital Group is offering its Westin-branded hotels in Ottawa, Calgary and Edmonton in a deal anticipated to bring $ 475 million to $525 million.

Cushman & & Wakefield is managing the sale of what is being branded as the Westin Hotels Portfolio Canada, but the residential or commercial properties may be sold separately, Curtis Gallagher, vice president of hotel financial investments, said in an interview.

” These are 3 excellent hotels in great cities,” said Gallagher, about the properties, noting Starwood, which has partners, is the lead investor in the portfolio, which was acquired in 2005.
” We will offer them together, or we will offer them individually.”

Marriott International, which now owns Starwood Hotels and Resorts, is the operator at all hotels and no changes to the names of the hotels are expected.

The Westin Ottawa is a 492-suite hotel directly linked to the newly built Shaw Convention Centre in the city and its largest mall, CF Rideau Centre. The Westin Calgary has 522 suites while the Westin Edmonton has 416.

” It’s just a capital recycle,” stated Gallagher, about factors behind the sale. “Ottawa is doing extremely well and has actually been for the last couple of years. Edmonton and Calgary, those markets are beginning to turn the corner and still carry out well now. There is upside there for the next owners or owners of these hotels.”

The Calgary website has some extra density readily available on it, however it’s a worth added component and development is not the chauffeur of the deal, said Gallagher. “You are purchasing into the turn-around story in Alberta, the consistency in Ottawa and some extra advantage with some tactical capital investment in the properties.”

In its newest report from November 2017, hospitality company HVS reported the occupancy rate in Calgary was 73.3% in the 3rd quarter, up from 69.5% a year earlier. Profits per available space leapt from $113.92 to $116.39 during the duration for the city.

Ottawa revealed strong growth with tenancy levels reaching 85.3% in the third of 2017, up from 79.6% a year previously. RevPar leapt from $131.76 to $155.09 in the nation’s capital during the duration, HVS said.

Gallagher anticipates buyers for the 3 residential or commercial properties might emerge locally, but he likewise states American and overseas buyers could be drawn in too.

” They are all in significant cities, and you take a look at the scale of the portfolio, and it can get you critical mass,” he stated. “It’s early days of marketing, however we see interest from all over the location.”

Garry Marr, Toronto Market Press Reporter CoStar Group.