- Location: Ottawa, ON
Sold for $30M
This 240-room hotel provided a generally decent and consistent income, but new hotel supply in the market stymied its growth potential. Furthermore, ownership was facing a sizable PIP from Holiday Inn as the franchise agreement approached maturity. The owner was sophisticated and knew the value of the hotel “as-is.” They tended not sell assets unless intrigued by a compelling offer. The hotel was well situated proximate to Ottawa University, and we felt there was a higher and better use. We worked with Campus Suites Student Housing to underwrite a conversion and back into a value which compared favourably to the current value of the asset as a hotel. That figure represented a 40% premium to hotel value. A successful transaction with Campus Suites followed.