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Toronto's Templar Hotel is now up for sale under a power of sale, as the young luxury boutique hotel looks for a new owner to continue its growing success in the heart of the Entertainment District. Located near the corner of Peter and Adelaide Streets, the hotel has been in operation since 2012, and is currently owned and operated by CVC Ardellini Investments. The property is listed by Core Consultants Realty under power of sale, with bidding starting at $1.
Featuring 27 suites, including four penthouses, the hotel has played host to many A-List celebrities and parties over the past few years, most recently Kobe Bryant's farewell retirement party after the 2016 NBA All-Star Game, and a photoshoot for the release of Drake's new album, Views. Despite the attention garnered by the wealthy elite, the hotel initially struggled to get up and running. Recently, however, the hotel has experienced a renaissance under new ownership, with an occupancy rate of over 90% following an aggressive online marketing campaign and extensive renovations, which have allowed the hotel to flourish.
The Templar Hotel has had somewhat of a turbulent history, dating all the way back to 1998 when the site was purchased by Del Terrelonge and Jason Wee Tom, co-founders of the Templar Development Corporation. Design work got underway in 2000 and construction began in 2004, with every aspect of the project overseen by Terrelonge's design firm, rhed. From there, the construction was fraught with delays, notoriously becoming one of Toronto's slowest moving developments until it finally opened its doors, quietly, in 2012. It wasn't long before Terrelonge and Wee Tom ran into serious financial difficulties, racking up nearly $40-million in liabilities, and the building was purchased under power of sale by holding company CVC Ardellini Investments, Core Consultants Realty's client, in February 2015. The mortgagor and previous owners, Templar Development Corporation, declared bankruptcy in May 2015.
CVC Ardellini Investments has since undertaken a complete overhaul of the building, which Core Consultants Realty Managing Director Shawn Abramovitz described as being in a complete state of disrepair, wrapping up renovations in September 2015. More than $1-million was spent on upgrading the building, which included extensive repairs to the ventilation, heating, and air conditioning systems, new bathrooms, and suite upgrades. The hotel has since regained its allure and is now a booming business in one of the city's hottest neighbourhoods.
Despite the previously poor state of the hotel, the building is not for lack of value; part of the reason Templar declared bankruptcy was the exorbitant amount of money spent on the finishes of the building and the high-end quality of design. Featuring sleek modernist details, rich marble and wood interiors, and elegant custom-designed furniture, both the minimalist exterior and interiors are an easy sight on the eyes.
The sale of the property also includes the trendy Québécois restaurant Parcae, located in the basement of the building. Abramovitz believes that this presents an excellent opportunity to rebrand both the hotel and the restaurant in conjunction with one another, as the business comes as a package deal with the building.
Abramovitz explained that this is the perfect time to attract international buyers. With instability in Europe and the US, Canada is viewed as somewhat of a safe haven at the moment, creating a 'perfect storm' that makes the Templar ripe for the market. The prime location of the building and international appeal of the Entertainment District should help attract plenty of attention.
Think you have what it takes to run the Templar Hotel? Bidding closes at 5:00PM on July 29, 2016. More information can be found on the sales website, here. You can also get in on the discussion by checking out our associated Forum thread, or by leaving a comment in the space provided on this page.
