$70M sale of Granville Suites Hotel underscores strong rebound and growth in hospitality sector

Vancouver, BC – Global commercial real estate advisor, Avison Young, announces the sale of the GEC Granville Suites Hotel (“the Granville”) – a 143-suite hotel with prominent commercial frontage in the heart of downtown Vancouver.

Sold for approximately $70 million to a local hotelier and prominent real estate developer, the Granville was bought in 2015 for $39 million – representing an increase in property value of 79%. Avison Young’s Jason Mah, Karly Degroot, and Brendan Hannah represented the sellers, Global Education Communities Corp (“GECC”) – Canada’s largest education and student housing investment company.

“Avison Young was proud to help GECC with the sale of this rare opportunity in a prime, central location, demonstrating strong historical income performance,” said Jason Mah, Principal, Avison Young. “Hotels in Vancouver rarely go on sale, so this is a truly unique offering. The hospitality sector is thriving in Vancouver, and the Granville underscores this fact by drawing record-breaking demand and bookings post-pandemic.”

The Granville will continue to operate as a hotel, honouring current and future reservations. White Spot will still operate on the ground floor. With minor capital upgrades to certain suites and common areas, there is opportunity for future revenue growth in this 12-storey hotel. Additionally, a future development site with multiple high-density, mixed-use projects in the nearby Granville Loops Plan area could bring more visitors – yet another opportunity for increased revenue.

“We appreciate Avison Young’s effort, dedication and professionalism,” said Toby Chu, Chairman, President, and CEO of GECC. “Over the past eight years, the hospitality industry has been very good to GECC – and Avison Young strategically navigated us through our decision to exit the Granville, initiating the sales process so that we can continue to explore other investment opportunities.”

Avison Young’s latest Hotel Report shows that, among Canada’s six major urban hotel markets, Vancouver was the top-performer in 2022. The city had the highest room occupancy rate (73%) – an increase of 50% year-over-year (“YOY”). Vancouver also had the highest average daily rate ($234.12) – up 44% YOY. Additionally, Vancouver marked the highest revenue per available room ($170.61), an increase of 117% YOY. By year end, Avison Young anticipates occupancy levels will surpass 2022 levels, approaching pre-pandemic volumes – and making the hospitality sector an exciting investment option.