Hotel Boom?

[toto]

Within the last few years Toronto has had what appears to be a hotel boom. Four - 5 star hotels and pretty much every major hotel chain has built or is building here. Anyone have any ideas why this is happening now? The Pam Am games comes to mind, but I can't see that as being the only reason. Have we all of a sudden become a major business centre, big enough to warrant this many more hotel rooms? Could it be as simple as not being here and deciding they should be? The conspiracy theorist in me, would like think that all of these hotel chains have a NDA with the provincial government not to speak about the casino going in at Ontario Place. What other kind of venue draw consistant large crowds, year round?

 

[gabe]

It is kind of surprising luxery hotels are flooding the hotel market in Toronto. Tourism is up from 2009 but the numbers are still not as high as they were pre SARS.
Luxury hotels are great , but what's really needed downtown is more extended stay hotels. I know a lot guys that come to Toronto to work for weeks if not months on end would rather stay at the Residence Inn downtown over the Hyatt or Four Seasons, simply because the Residence Inn rooms are better equipped for longer stays, feels more like a condo than a hotel shoe box. Chicago can't seem to build extended stay and suite hotels fast enough! They have 7 all suite hotels in the downtown core, and a bunch more outside the city. New York City is another place where extended stay hotels have grown in popularity.

Too bad the luxury extended stay hotel Element by Westin on King W was canceled. It would have been a nice alternative for travelers seeking suite hotels.

 

[TOareaFan]

I seriously doubt that the Pan Am games had any influence on the boom in luxury hotels.....for one thing, I think Trump, Ritz, Shangra La were well planned before we bid for/won the right to host those games.

I think the 5 star boom is because a consultant (I wanna say PKF but don't quote me on that) wrote a report that, basically, said we were the biggest city around that did not have a 5 star hotel...so, as these things do, it prompted a bit of a building boom to the point we will likely end up "overserved" in the segment of the market.

Other than the luxury end, we have had a few boutiques and a few focused service hotels built....nothing major though!

 

[jn_12]

Toronto is starting to attract high-end tourists rather than the families it relied upon pre-early 2000s. Even though the number of tourists isn't the same, we hit a record last year with the number of hotel rooms sold with nearly 9 million (That means almost 70% occupancy across the GTA). This suggests that people with more expendable money are staying here longer. If that's the case, there is surely a market for high-end hotels as well. I think this will also help drive prices down as there's no way the 3 star hotels will be able to continue charging anything close to what these new hotels are going to charge, and with that you're going to see Toronto become an attractive place for families again as well.

 

[TOareaFan]

Toronto is starting to attract high-end tourists rather than the families it relied upon pre-early 2000s. Even though the number of tourists isn't the same, we hit a record last year with the number of hotel rooms sold with nearly 9 million (That means almost 70% occupancy across the GTA). This suggests that people with more expendable money are staying here longer. If that's the case, there is surely a market for high-end hotels as well. I think this will also help drive prices down as there's no way the 3 star hotels will be able to continue charging anything close to what these new hotels are going to charge, and with that you're going to see Toronto become an attractive place for families again as well.

I have no doubt there is a market for a 5 star hotel....just not sure there is a market for 4 of them......the presence of 5 star hotels in a market is not intended to (nor does it typically) drive prices down. I would imagine those 4 hotels are aiming at the $300 + a night room rate......not the typical family stay sort of rates!

 

[Automation Gallery]

I have no doubt there is a market for a 5 star hotel....just not sure there is a market for 4 of them......the presence of 5 star hotels in a market is not intended to (nor does it typically) drive prices down. I would imagine those 4 hotels are aiming at the $300 + a night room rate......not the typical family stay sort of rates!

Yeah, but all four put together are still less than 1000 rooms which is peanuts for a city the size of Toronto...truthfully i believe that we can easily.handle another 1000 rooms of the 5 star category.

 

[gabe]

Having more 5 star hotels might result in better deals and hotel packages especially on weekends when there is very few businesses travellers, We wont be seeing $800 a night room rates like the 5 star hotels in New York City and Paris.

 

[TOareaFan]

Having more 5 star hotels might result in better deals and hotel packages especially on weekends when there is very few businesses travellers, We wont be seeing $800 a night room rates like the 5 star hotels in New York City and Paris.

No, but rooms in that consistently rent in the $300 - $500 range are likely and that is hardly going to lower either, Tooronto's average room rate or its REVPAR figures.

 

[gabe]

$300 to $500 is comparable to other North American cities with 5 star hotels with the exception of New York City of course. I have stayed at the Ritz in Philly and Chicago ans never spent more than 400 a night for a regular room.
In New York city the average hotel room price skyrocketed to $350 a night !

 

[gabe]

From USA Today Travel Section. http://travel.usatoday.com/hotels/p...easons-thompson-hotels/142412/1#uslPageReturn

Want to sleep in style when you next visit Toronto? No problem.

The city's adding a dazzling array of new luxury hotels, from chic boutiques to large, luxurious hotels. You'll find them near the sports stadium and in the bustling entertainment district. Next Wednesday (Feb. 16, 2011), in fact, the luxury Ritz-Carlton chain is opening its first Canadian hotel in Toront

Ritz-Carlton: The luxury Ritz-Carlton chain is about to open a 267-room hotel in a 53-story, skyline altering tower. The hotel - with a super-sized 23,000-square-foot spa - is located near the entertainment district.

Trump: This spring, the new, 60-story Trump International Hotel and Tower will officially open, noting Trump's first Canadian venture. Located in the heart of Toronto's financial district, the hotel will add another 256 luxury rooms.

Thompson Hotels: Last June, the New-York based boutique hotel chain opened its 102-room in Toronto's art and design district. It's the chain's first international location. Expect plenty of art, and a good location to experience the city's nightlife and cuisine. The rooftop has a hip bar lounge, swimming pool with private cabanas and great views of Toronto's skyline and lakefront.

Le Germain Maple Leaf Square: Last November, this hotel opened adjacent to the major-league sports venue, Air Canada Centre. It's an eight-story luxury boutique hotel with modern décor and high-tech amenities in its 171 guest rooms.

Shangri-La: The luxury chain well known in Asia in 2012 will open a 220-room hotel that occupies 17 floors of a 65-story tower.

Four Seasons: Farther out - expect a 2013 opening - Four Seasons is working on opening a new hotel in its headquarter city.

 

[TOareaFan]

People who have been staying with RC in montreal for decades (if I am not mistaken it is +/- 100 years old) will be pleased to know that Feb 16 marks the brand's first opening in Canada!

 

[Dan416]

People who have been staying with RC in montreal for decades (if I am not mistaken it is +/- 100 years old) will be pleased to know that Feb 16 marks the brand's first opening in Canada!

I nearly made the same mistake upon learning Simons was coming to (the rest of) Canada. It's easy to forget that Quebec is part of Canada somehow.

 

[Peepers]

People who have been staying with RC in montreal for decades (if I am not mistaken it is +/- 100 years old) will be pleased to know that Feb 16 marks the brand's first opening in Canada!

The Ritz-Carlton in Montreal is not part of the Ritz-Carlton chain so it is correct to say it is the first location for the chain in Canada.

 

[TOareaFan]

The Ritz-Carlton in Montreal is not part of the Ritz-Carlton chain so it is correct to say it is the first location for the chain in Canada.

See....the people staying there will be surprised!

 

[allabootmatt]

The Ritz-Carlton in Montreal is not part of the Ritz-Carlton chain so it is correct to say it is the first location for the chain in Canada.

I seem to recall some arrangement whereby the RC in Montreal will actually become part of the chain after the Toronto location opens, which I presume would spare them a court fight over the use of the name. Will also coincide with a renovation of the old dame, which is handy since the last time I was there it looked pretty tired--surprising in a city that has pretty tough competition for nice hotels.

Interesting to wonder, also, whether there will be a second round of announcements by the international chains that still won't be in Toronto after the current dust settles. The city is about to absorb a lot of expensive rooms all at once, so I suspect others will want to wait and see. I'd love to see a Sofitel to match the one in French-friendly Montreal; they are really excellent. Other than that I suppose there's Mandarin Oriental and Peninsula, though the Shangri-La may have the Asian super-hotel market locked up in TO for now.

Oh, and W! I heard they're taking over the old Malting Silos. Or maybe it was the Hearn.