Toronto Chelsea Green (was 33 Gerrard) | 297.25m | 90s | Great Eagle | a—A

I agree it is not one of the Ten Commandments that hotels and accommodation shall never change. Technology is changing and more individuals are becoming mini entrepreneurs due to the changing technologies. Nothing can stop this change like it or not.
 
LUVIT! said:
I agree it is not one of the Ten Commandments that hotels and accommodation shall never change. Technology is changing and more individuals are becoming mini entrepreneurs due to the changing technologies. Nothing can stop this change like it or not.
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Stop, no - but ensure profit taking is met with fair taxation - yes, and I am not sure if the latter had happened.

AoD
 
There will be more and more condo corps that crack down on AirBnB type rentals in them. It will be interesting to see how that plays out over the next years.

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Those are all high-end though, as is the (small percentage) replacement here. The Chelsea represents moderately priced 1,600 rooms which are seldom being replaced these days.

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buildup said:
Not so simple. If a shortage of hotel rooms emerges someone will build another hotel. If travelers shift to Airbnb the lost room service jobs will be replaced by restaurant jobs and chambermaids will be replaced by molly-maid since airbnb rooms are cleaned too. Its more restructuring.
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Agreed. The market knows best in situations like this. What we're really seeing is that hotel rooms in Toronto are slowly getting more expensive, which is to be expected as the city continues to grow and develop.
 
You're over-simplifying. You're mixing two markets. There's the real estate market, which is driving the redevelopment proposals, and then there's tourism which drives the accommodations market. That's been doing just fine over the last few years: Toronto had a record number of visitors in 2016, recording a seventh straight year of growth. The hotels are not, generally, facing closure and replacement because they are going empty, they are facing redevelopment because landowners can reap rewards by building larger buildings on the hotel sites, getting the most bang for their buck from condo sales. Yes, Toronto has needed luxury hotel rooms, but keeping reasonably priced hotel accommodations in the city is important for the tourist industry too: not everyone wants to stay in an AirBnB suite (and as I said, AirBnB is going to find that more and more condo boards will make short stay rentals difficult in the towers).

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interchange42 said:
You're over-simplifying. You're mixing two markets. There's the real estate market, which is driving the redevelopment proposals, and then there's tourism which drives the accommodations market. That's been doing just fine over the last few years: Toronto had a record number of visitors in 2016, recording a seventh straight year of growth. The hotels are not, generally, facing closure and replacement because they are going empty, they are facing redevelopment because landowners can reap rewards by building larger buildings on the hotel sites, getting the most bang for their buck from condo sales. Yes, Toronto has needed luxury hotel rooms, but keeping reasonably priced hotel accommodations in the city is important for the tourist industry too: not everyone wants to stay in an AirBnB suite (and as I said, AirBnB is going to find that more and more condo boards will make short stay rentals difficult in the towers).

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You're making this too complex. Its all one market , as the city intensifies prices go up for residents, visitors, commercial etc. Decent yet cheap hotels in the core were doomed anyway.
 
buildup said:
You're making this too complex. Its all one market , as the city intensifies prices go up for residents, visitors, commercial etc. Decent yet cheap hotels in the core were doomed anyway.
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That's assuming AirBnB isn't at an advantage due to taxes - or the incomplete application/misapplication thereof. Ditto additional costs, due to requirement imposed on hotels that are otherwise not applied to short-term rental where it wasn't intended for use as such.

AoD
 
My take on it is this: there are two types of hotel customers. Type 1 doesn't care where they stay, as long as it's cheap. Type 2 wants an "experience", and is willing to pay for it. The more... frumpy... hotels downtown don't offer an experience, and they're not cheap. Type 1 people are more likely to go for a motel further out of the city, or to use AirBnB. Thus the lack of demand for places like the Chelsea. They will continue to close.
 
Not to mention Toronto has some really nice cheap airbnbs, compared to many other cities. Most other cities the rooms/apts are further from the core or are gross old and lived in. There are a lot of brand new downtown airbnb options.
Though places like the hilton canopy at bloor and sherbourne will help fill that void.
 
Way oversimplified, as if there are no lags. Higher land prices don't significantly drive up room costs for existing hotel rooms, only new ones. That's why the new hotels in the core have all been high end. For existing hotels, the increasing land values can tempt their owners to redevelop, as is happening here. There would also be an increase in property taxes that a landowner may have to pay if their property is reassessed as now being worth what could be built there (a major flaw in the system that's endangering heritage buildings), but that increase would not be pushing the price of 3 star rooms into 4 star or 5 star territory.

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