Sheraton Centre Toronto Hotel Sells for $335 Million, Largest Single Hotel Transaction in Canadian History

Sale takes place in strongest year of Canadian hotel performance on record

Toronto, ON – October 26, 2017 – CBRE Canada announces it has brokered the sale of Toronto’s Sheraton Centre for $335 million, the largest ever single hotel transaction in Canadian history. Formerly owned by Marriott International, the 4-star hotel consists of 1,372 guest rooms and over 130,000 sq. ft. of premiere meeting and event space, making it Toronto’s largest convention hotel. It enjoys a prominent location within Toronto’s financial core near the intersection of Bay and Queen Street, directly connected to the City’s 30-kilometre underground PATH network and across from City Hall.

The hotel completed an approximate $110 million comprehensive master plan renovation in 2016 which included a full guest room refurbishment to significantly improve the guest experience and drive top line performance. The Buyer will invest in further renovations enhancing the lobby and other public spaces.

“The Sheraton Centre is one of the city’s most iconic hotels. Its superb location, exceptional product and world class branding, easily makes it the hotel of choice for many visitors and business travelers from across the globe,” commented Bill Stone, Executive Vice President of CBRE Hotels. “Further, its recent capital investment, and further improvements in planning by the Buyer, will ensure the hotel continues to be a dominant player in downtown Toronto”.

“We are experiencing a record-setting hotel market in Canada, with Toronto a hotbed for much of this activity,” noted Deborah Borotsik, Vice President of CBRE Hotels. “2017 is set to break new records in terms of top line performance with Canada’s strong economic growth driving business travel at the same time as a low dollar is spurring an increase in tourism.” The sale of the Sheraton Centre comes during an exceptionally strong year for the hotel sector. The Downtown Toronto Hotel market achieved Revenue per Available Room (‘RevPAR’) growth of 16.0% in 2016 riding the wave of the NBA All-Star Game, Microsoft Convention and the World Cup of Hockey in addition to overall growth in the market, with annual growth estimated at 8% in each of the next two years.

These solid underlying fundamentals are propelling a highly active hotel investment market, which is coming off the back of a transaction volume in 2016 of $4.1 billion – a level not seen since the significant entity-level transaction and merger and acquisition activity almost a decade prior in 2007. With an estimated $2.8 billion of transactions recorded as of Q3 2017, the market is poised for another exceptional year of investment. Toronto remains central to this activity, accounting for almost one-third of the volume.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through about 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

In Canada, CBRE Limited employs over 2,000 people in 22 locations from coast to coast. Please visit our website at www.cbre.ca.

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