much more efficient basis,” says Stone, adding leaders will be able to flex more muscle when negotiating corporate travel rates. And, while it may be too soon for some of the newer deals, there are already initiatives in the pipeline. Several hotels will receive a face-lift, thanks to new ownership. Execs at APA Group have described plans to use Coast Hotels as a vehicle to help introduce a new urban-style hotel concept in North America. Features include LED-equipped showers and water-conserving fixtures, as well as other eco-centric initiatives that will allow the hotel to reduce its carbon footprint. According to a Carlson Wagonlit white paper published in June, the mergers may give hoteliers more heft when negotiating with corporate travel buyers, especially in markets with fewer options. And, now that Marriott is expected to capture nearly a third of all corporate travel spend in 14 of 20 of the world’s top cities —
including 41 per cent in Toronto — negotiations will be fierce. At the same time, these megamergers will spell out other benefits for the chains as well, including loyalty programs that will help drive business away from the OTAs, and being able to expand lifestyle brands in certain markets that will help combat sharingeconomy providers such as Airbnb. The big question on everyone’s mind is what 2017 will bring. After a rough 2016, Alberta is expected to lead the country in GDP growth and, together with Saskatchewan, should experience a rebound in investment activity. McLuskie adds that while foreign buyers are purchasing larger platforms, they may not desire the entire portfolio, so we can expect more trading activity on an individual basis. Stone hints at two more big deals in the works, slated to take place early 2017, but, he asserts, the level of activity won’t be as earth-shattering as 2016. “I don’t think it’s going to be
Number of trades SOURCE: CBRE HOTELS Q3 REPORT
2015
92 221 2016
140.2
PER CENT CHANGE quite as strong as [last year]. If you include the Bluesky deal, it’s going to be hard to beat $3.8 billion in activity, but we see continuing demand, accelerating offshore interest and strong fundamentals.” u