Brookfield arm buys Sheraton hotel in Toronto for $335M in landmark deal

The Sheraton Centre Hotel in Toronto’s downtown core has been purchased in a $335-million landmark understanding by an arm of Brookfield Asset Management, that says it sees intensity for some-more liberality acquisitions in Canada.

It’s a largest-ever singular hotel transaction in Canadian history, pronounced CBRE Canada, that acted as a attorney for seller Marriott International.

Main concentration in U.S.

The squeeze also outlines Toronto-based Brookfield’s initial pull into a liberality zone during home. The choice item government conglomerate’s liberality portfolio has mostly been focused on a U.S., though also includes resources in a U.K. and a Atlantis Hotel in a Bahamas.

“We’ve been looking to enhance in other cities in North America, and given a laxity with Toronto, we were really vehement to have a opportunity,” pronounced orator Matthew Cherry.

Brookfield is not now looking during other hotel acquisitions in Toronto, though there is intensity for other exchange opposite Canada, he added.

Not a ‘one off’

“We don’t perspective this as a one off,” Cherry said. “If there is a identical eventuality to acquire an item of this form of distance and quality, we would positively be looking during it.”

The four-star hotel was purchased by a Brookfield-sponsored private genuine estate fund, and will continue to be operated by Marriott. The City of Toronto continues to possess a land on that a hotel sits.

The Sheraton Centre has 1,372 guest bedrooms and is located in Toronto’s financial district, tighten to City Hall. It also has some-more than 12,000 block metres of assembly and eventuality space.

Bill Stone, CBRE’s executive vice-president of a hotel division, says a Sheraton was rarely sought-after and had seductiveness from unfamiliar buyers as well.

Recent renovations

“It is a singular eventuality where we can buy something of this scale, that also has been renovated to a border that it was,” Stone said.

The Sheraton had recently finished roughly $110 million in renovations, including guest room refurbishments, CBRE said. However, a genuine estate services association pronounced serve renovations to a run and other open spaces are expected.

“We’re looking brazen to stability to urge a operations of a hotel, and consider there is poignant expansion and upside,” Cherry said.

Hotels have been a prohibited commodity in new years, and liberality properties in Toronto have been saying near-record occupancy rates, according to Stone. In Toronto, this has been driven in partial by clever blurb growth and increasing tourism, he said.

The Sheraton understanding now creates a 2015 squeeze of a 511-room Westin Bayshore hotel in Vancouver for $280 million a second-biggest in Canadian history. The third-most remunerative transaction was a $225 million squeeze of a Four Seasons hotel in Toronto in 2016.

“This is a delay of direct for hotels,” pronounced Stone. “We do expect some other vast scale exchange in a subsequent 6 to 12 months.”

Article source: http://www.cbc.ca/news/business/sheraton-hotel-brookfield-1.4375369?cmp=rss