Montreal Hotel Investments

Montreal Hotel Investments

Montreal Hotel Investments

Montréal Québec Hotel Investments & Developments – Hotel Equity Fund

Montreal Quebec – Hotel Market Report 2020

Montreal is a prime location known for its high quality of life. This city’s one-of-a-kind geography (an island with a mountain in the middle of it) is the foundation of its magical lifestyle.

Montreal has a strong economy; many companies – from start-ups to business giants – have made their home in this city. They have created jobs in several categories (video gaming, technology, artificial intelligence, etc.).

During autumn 2019, Google opened its first gaming design studio in this innovative center. Facebook has been in Montreal for almost seven years; they opened a new artificial intelligence lab in 2017.

Business travelers make up a significant percentage of the city’s hotel guests. The prosperous economy draws them to this metropolis and, in turn, they support local business. Conferences and meetings contribute to the success of a hotel investment.

Montreal is a driving force in the national level of growth in Canada. Toronto is another top-performer.

Montreal Downtown has ever-expanding dynamic sectors including finance, insurance, and real estate categories. During 2020, service industries will bring over 17,000 jobs new jobs into the local economy.

Montreal’s infrastructure also garners attention. In June 2019, the city inaugurated the $4.5 billion Samuel De Champlain replacement bridge over the St. Lawrence River. Construction is ongoing for the 67-kilometre Réseau Express Métropolitain Light Rail Train – a light rail network and Quebec’s largest transit project since 1970.

As well, the Montreal airport market ranking is continually showing advancement; between 2014 and 2018, it moved up eight spots. All these improvements in transportation make it easier for travelers.

Visitors to Montreal find it an easy city to explore and discover its attractions. For example, if tourists are in the heart of the Quartier des spectacles (the cultural district), they can walk to the Palais des congrès Convention Centre and connect to the Underground City.

Despite several major public infrastructure projects coming to an end, the city’s GDP was expected to rise by 3.0% in 2019 and 1.8% in 2020.

Montreal’s market fundamentals have shown strength and risen by 13 percent. Therefore, it is no surprise that international investors are extremely interested in Montreal.

With the re-opening of a 950-room hotel, as well as the opening of three new properties, guest room supply rose by 7.7% in 2018.

At least six new hotels of various sizes – an overall 8.0% contribution to supply – are expected to open during the first two years of this decade. The per-room value in the Montreal Downtown market reached $180,300 in 2018.

The room value was expected to increase again in 2019; during 2020, it is projected to go beyond the $200,000 mark for the first time. With an expected per-room value of $234,100 in 2022, the Montreal Downtown market will have risen several levels of ranking in the past six years.

The current Montreal hotel sector is been fueled by a booming job market and increased tourism. In order to meet the rising demand from leisure and business travelers, hoteliers are building new properties and redeveloping existing structures. Recently, the city has seen widespread construction and renovation of lodging properties.

Montreal hotels offer the ultimate in modern amenities as well as exemplary service to guests. At present, there is a definite hotel boom – a renaissance – in this exciting city.

Occupancy rates are higher now than they have been since earlier in the past decade. These results attract local and foreign investors and international hotel brands. Many investors have already tapped into these amazing opportunities.

Hotel investment makes a huge positive impact on a city’s overall economy. An international luxury brand can set a benchmark for the local lodging sector. Sometimes major brands build more than a stand-alone hotel.

Often larger modern projects are connected to other commercial and real estate development such as in mixed-use properties. For example, the hotel might be perched over an upscale store, or luxury penthouses could be for sale as private residences.

About 16,000 guest rooms are available in the Montreal area; due to the high demand, there is not an oversupply. Occupied room nights were expected to have increased 25% in 2019 compared to 2009.

Tourist traffic is a huge factor in the hotel industry. Montreal hosts a multitude of guests (short stay, long stay, seasonal, weekend, etc.); 19 million passengers came through the Pierre Elliott Trudeau International Airport in 2019.

As well, the considerable interest from investors demonstrates confidence in this thriving market for the long-term. Montreal’s momentum will continue into this new decade.

 

HOTEL EQUITY FUND INVESTMENT PARTNERS

 

Acquisitions and Investments

Hotel Equity Fund is one of the top hotel investment in Europe, and now expanding to New York City, West Hollywood CA, South Beach Miami Florida, Chicago, San Francisco, Washington DC, London, Paris, Berlin, Toronto, Jerusalem and Tel Aviv Israel, with results that have consistently bested industry averages. Much of this success is a direct result of our focus on investor returns, individual assets, and aligning management with the individual needs of owners. Our combination of strong capitalization through Hotel Equity Fund, and a strong track record of experience offer a level of credibility that is nearly unmatched in the industry.

 

 

Investment Criteria

We are aggressively seeking new properties in New York CityWest Hollywood CASouth Beach Miami Florida, ChicagoLos Angeles, San FranciscoWashington DCLondon UKParis,  BerlinToronto ONMontréal Québec, Israel including Tel Aviv and Jerusalem, and feel that our centralized operation of business in New York offers the very type of responsiveness, professionalism and capital resources the industry has been seeking. Please click here to review the investment criteria.

 

Development Opportunities

Our Hotel Equity Fund owned hotel and resort development subsidiary, Hotel Equity Fund Development, has extensive experience in resort, hotel, and golf course development, with recent hotel development and hotel redevelopment projects totaling over $2 billion. Our projects are well known for meeting market demand and for attention to both design and operating detail. Our culture of “listening to the customer” is at the heart of our development process and has allowed properties to excel in both operating performance and value retention.

 

Boutique Hotel Investments

Boutique hotels, also known as lifestyle hotels, vary in shape and size; however, all boutique hotels rely heavily on creative energy and highly personalized service to compete in the overall hotel industry.

Hotel Equity Fund is a respected financial hotel investment firm, utilizing hotel equity funds to assist its hotel real estate developers and partners in gaining favorable returns on their investments. Hotel Equity Fund works with a range of hospitality firms to increase the efficiency and effectiveness of individual hotel properties, ranging from boutique hotels with excellent F&B, premium brands to mid to up-scale well-located properties.

Since 1980, the Hotel Equity Fund and Hotel Equity Fund Partners Investment Program have invested over $2 billion into quality hotel real estate properties with aggregate transaction capitalization of nearly $3 billion. By partnering experienced advisors with each investment partner, Hotel Equity Fund ensures that each property is equipped with a creative vision and practical management plan to achieve long-term financial sustainability and success.

 

Hotel Developments & Acquisitions

Hotel Equity Fund routinely assesses joint venture development opportunities which provide long-term alignment of interests for both Hotel Equity Fund and prospective partners in New York CityWest Hollywood CASouth Beach Miami Florida, Chicago, Los AngelesSan FranciscoWashington DC, Toronto Canada, LondonParis, Jerusalem and Tel Aviv Israel.

Experienced, multi-brand, investment-grade hotel developers, Hotel Equity Fund will take a project from dirt or acquiring an Landmark Building for hotel conversion to a stabilized hotel through hotel disposition. Offering a variety of hotel investment services, our specialized team can meet your unique hotel project requirements including, but not limited to, the following:

 

  • Assist in hotel site selection and property evaluation.

 

  • Evaluate benefits of and selection from available boutique brand or a national brands.

 

 

 

  • Make recommendations regarding legal entity and JV agreement options.Prepare preliminary hotel construction cost estimates.

 

  • Offer professional market study or appraisal recommendations.

 

  • Assist in selection and coordination of attorney, architect, civil engineer, project manager, general contractor,

 

  • FF&E procurement and interior design.

 

  • Provide construction, financing, permanent debt, refinancing and disposition roles.

 

  • Execute long-term management contract services.

Hotel Equity Fund’s proven investment methods mitigate risk and encourage success, combining our investment and management fluency with the strength and potential of partner assets. If you would like to read more about the positive impact we have made with our hotel equity fund, please explore the entirety of this website.