The Edge of Next Year: 2025 Hotel Industry Outlook
Risk, insurance & safeguarding hotel investments
Hotels or bust: Vancouver's make-or-break moment for future events and tourism
Sleep tourism is an identifiable growth sector, are hoteliers paying attention?
The challenges of converting commercial real estate properties into residential
SUKHDEV TOOR, MANGA HOTELS, AND A FAMILY VISION FOR THE FUTURE
THE O'CONNOR APPROACH®
Property tax is one of the largest components of a hotel's operating expenses. Reducing property tax is the quickest way to boost up your bottom line significantly. After years of research, a proprietary breakthrough methodology was developed by O'Connor. It was tested in 40+ states in the U.S. with great success, resulting in far greater tax reductions than ever before.
TANGIBLE & INTANGIBLEPROPERTIES
Personal properties, both tangible and intangible, are not taxable. Tax assessors in Canada only deducted Tangible (FF&E) but failed to deduct Intangible value associated with a hotel's flag.
Intangible Properties Include:
• Franchise License
• Permit
•Goodwill
•Quality Control
4 major components are needed to achieve a successful property tax appeal. O'Connor has 1,000+ professionals worldwide, representing 350,000+ properties including 6000+ hotels in the U.S. Aggressively pursuing multiple rounds of appeal
CANADIAN HOTEL INDUSTRY OUTLOOK
Canada
Sleep
FALL 2024
Volume 4 Issue 4 staymagazine.ca
PUBLISHER
Big Picture New Media
EDITOR-IN-CHIEF
Stacey Newman
stacey@staymagazine.ca
DIRECTOR OF SPONSORSHIP & ADVERTISING
Mike Egan
mike@staymagazine.ca
ART DIRECTION + DESIGN
Sonya Clarry + Brienne Lim
CONTRIBUTORS
Allan Lynch, Jim Byers, Tim Wiersma, Stacey Newman, Jane Stinson
VISIT US ONLINE
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X @StayMagazineCA
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STAY is published four times per year by Big Picture New Media (BPNM), a subsidiary of Big Picture Conferences. For 27 years, Big Picture has been hosting the Canadian Hotel Investment Conference (CHIC) and other go-to conferences and events for Canada’s hotel industry. For subscription inquiries, please visit staymagazine.ca/subscribe.
ISSN: 2816-7864
Key title: Stay
EDITORIAL ADVISORY BOARD
Robin McLuskie Managing Director, Hotels, Colliers Hotels
Brian Leon President, Choice Hotels Canada
Brian Flood EVP and Practice Leader, Hospitality and Gaming, Cushman & Wakefield
Scott Richer VP, Real Estate and Development (Canada), Hyatt Hotels
Judy Sparkes-Giannou Co-Owner, Clayton Hospitality Inc.
Deborah Borotsik Senior VP, Beechwood Real Estate Advisors
Alan Perlis President & CEO, Knightstone Capital Management and CEO, Knightstone Hotel Group
Alnoor Gulamani President, Bayview Hospitality Inc.
Christina Poon General Manager, Hotel W New York – Union Square
Phil Thompson Business Lawyer, Thompson Transaction Law
Sandra Kanegawa Owner, Heritage Inn Portfolio, X-Dream
Develop the brand that redefined affordable stays
Prioritized reinvestment
Simplified development
Powered by Hilton
Designed to deliver the best of what matters most to budget-conscious travelers, Spark by Hilton provides an improved conversion offering unrivaled within the segment.
FUTURE-PROOFING HOSPITALITY
STRATEGIC PERSPECTIVES FOR 2025
WELCOME TO THE FALL 2024 ISSUE OF STAY MAGAZINE. THIS SEASON, WE FOCUS ON THE EVENTS, MARKET CONDITIONS AND POLICY CHANGES SHAPING THE INDUSTRY AS WE LOOK TO THE EDGE OF NEXT YEAR.
At STAY, we find and tell stories that are original, informative, and that provoke thought and conversations about all the things that might affect stakeholders in the Canadian hotel sector.
A major highlight of this issue is our 2025 HOTEL INDUSTRY OUTLOOK. This feature brings together forecasts and ideas from leading Canadian experts. From market trends to investment opportunities, this outlook provides readers with valuable information about where we are heading and how to prepare.
In addition, we explore the rise of sleep tourism, a rapidly growing sector driven by the increasing focus on health and wellness. As sleep disorders become more common, hotels are offering specialized programs and amenities aimed at helping guests rest better. This article looks at how properties are meeting this demand and what the future holds for this niche market.
We also tackle the important issue of invisible disabilities in the hospitality sector. From guests to employees, many individuals face unique challenges due to conditions like PTSD or autism. This feature highlights practical steps that hotels can take to create more inclusive environments for everyone.
Another key focus is the transformation of commercial properties, including hotels, into residential spaces—just one of the potential solutions to Canada’s housing crisis. With cities like Calgary and Toronto leading the way, we explore the problems and possibilities of these conversions.
We examine the ongoing changes to Canada’s Temporary Foreign Worker Program, which plays a crucial role in the hospitality industry. This article breaks down what the new regulations mean for employers and workers, and what additional reforms might be needed to protect vulnerable employees.
We hope this issue provides you with new and interesting perspectives on the shifts shaping the hospitality industry, and a renewed sense of purpose and optimism as we head toward 2025!
Thank you for being part of the STAY community,
Stacey Newman Editor-in-chief
INSIDE SPARK BY HILTON
With Hilton approaching the milestone of 100 Spark hotels, how has the brand’s global expansion strategy evolved, and what markets are you targeting next?
How consistency and strategic expansion drive success in the midscale market
Global Brand Leader,
Spark by Hilton
Spark by Hilton has expanded rapidly since its launch. What key factors do you attribute to this growth, particularly regarding its design and amenities?
Spark by Hilton has emerged as a standout due to its unique position as a conversion-only brand. It provides a cost-effective way for hotel owners to reinvent existing properties in the premium economy segment. Spark focuses on delivering what matters most to guests: consistency, value, and a welcoming atmosphere. Each location features bright, colourful exteriors, nature-inspired artwork, and versatile common areas with diverse seating options, from communal picnic tables to rocking chairs, catering to various guest needs throughout the day. This clear focus on essential amenities and a reliable experience drives Spark’s rapid growth as we enter new markets.
The opening of Spark by Hilton London Romford marked a significant step in our global expansion, with more properties planned in the Caribbean, Latin America, Canada, Germany, and beyond. Our strategy is to introduce the Spark experience—friendly service, welcoming atmosphere, and unique personality—into new markets worldwide.
Spark by Hilton emphasizes thoughtful design and intuitive amenities. Can you elaborate on which specific elements have been most effective in attracting and retaining guests?
Guests often encounter inconsistent experiences at value hotels, but Spark consistently delivers on four core qualities:
• Cleanliness: We ensure thorough attention to detail across all touchpoints to provide a comfortable and secure environment.
• Comfort: We foster a relaxed, down-to-earth atmosphere for a welcoming stay.
• Simplicity: Inspired design and thoughtful amenities create a streamlined, hassle-free experience.
• Reliability: We focus on maintaining quality and service, offering dependable experiences without a cookie-cutter approach.
These qualities make Spark appealing to a wide range of travellers, from adventurers seeking a comfortable, budgetfriendly stay with free breakfast to business travellers needing a good night’s rest before hitting the road.
ALISSA KLEES
As the brand leader, how do you ensure consistency in quality and guest experience across Spark hotels in different regions?
Consistency is central to Spark by Hilton. As Hilton’s first large-scale, conversion-only brand, each property undergoes a comprehensive renovation of all guest-facing areas. While hotels may differ in size or layout, the look and feel—colours, signage, lobby and room decor, and even team member attire—are standardized to ensure a uniform experience. Rooms feature practical, streamlined furniture, such as open closets, in-room refrigerators, multi-purpose work surfaces, and bright, functional bathrooms. This approach guarantees guests know what to expect at any Spark location.
How does Spark by Hilton distinguish itself from other brands in the competitive midscale hotel market?
Hilton recognized an opportunity to redefine the premium economy segment, and Spark has become a leader by offering quality and consistency, supported by Hilton’s commercial strength. The swift expansion and guest and partner trust reflect the brand’s successful positioning. Spark’s growth, in less than a year since launching its first hotel, showcases its appeal in the midscale market.
How has guest feedback been integrated into the ongoing development and refinement of the Spark brand, particularly as you near the 100th hotel opening?
Are there any new features or changes on the horizon for Spark by Hilton that you believe will impact its position in the market?
Building on guest feedback, we believe that our planned refinements will further strengthen Spark’s position in the market, especially as new competitors emerge. These updates will help us maintain our edge in the competitive midscale segment.
How is Spark by Hilton addressing the increasing demand for sustainability in the hospitality industry through its design and operations?
As a 100 per cent conversion brand, Spark focuses on maximizing existing assets, reducing the need for new construction. It is among Hilton’s first brands to offer 100 per cent Digital Key capability and bulk amenities. Owners can also access Hilton’s LightStay ESG management system to manage energy, water, and waste, aligning with Hilton’s 2030 sustainability goals. Through these measures, Spark not only extends the life of existing properties but also contributes to a more sustainable hospitality industry.
What are your long-term goals for Spark by Hilton, and how do you see the brand evolving within Hilton’s broader portfolio?
Guest feedback has played a crucial role in shaping Spark’s development. Based on early input, we have refined features like adding task chairs in guest rooms alongside our comfortheight ottomans and introducing a more creative approach to our morning bagel bar. These adjustments demonstrate our commitment to continuously improving the guest experience.
We aim to establish Spark as a leader in the premium economy segment, focusing on markets where consistency in quality and experience is highly valued. As we grow globally, Spark will complement Hilton’s broader portfolio by filling a unique niche. Our emphasis on simplicity, comfort, and reliability will help us meet a wide range of travellers’ needs and support Hilton’s mission to be the most hospitable company in the world.
Please tell us about yourself, your career, your role at Hilton, and your goals for Spark by Hilton as a brand.
In my role, I oversee the strategic direction and growth of Spark by Hilton. With over 20 years of experience in strategic leadership, brand building, and owner support, I am committed to driving Spark’s development. Previously, I worked as senior director of brand personality for Hilton’s All Suites and Focused Service Categories, focusing on team inspiration and brand identity. I also served as senior director of global initiatives, where I supported business strategies and owner profitability. My goal is to expand Spark’s presence globally while maintaining Hilton’s high standards, ensuring it remains a leader in the premium economy segment.
hilton.com
SAFETY IN HOTEL OPERATIONS
7 TIPS TO SUPPORT NEW CANADIANS AT WORK IN HOSPITALITY
FROM WORKPLACE SAFETY & PREVENTION SERVICES
Canada has been welcoming approximately 400,000 immigrants each year since 2021, according to data from Statistics Canada. That’s a lot of people arriving within a short period of time, and many are building their lives in Canada with jobs in the service and hospitality sector. All of this means that there’s a good chance your hospitality team already has some new hires who are also new Canadians.
“In the hotel industry, we’re seeing a lot of newcomers working as room attendants, taking on cleaning and laundry duties, dealing with parking, and performing building and property maintenance,” says David Smith, partnership account manager at Workplace Safety & Prevention Services (WSPS). “It’s important for employers and supervisors to recognize the barriers that new Canadians face so that they can support them through their transition and set them up for success at work.”
Smith explains that the first step for a newcomer isn’t necessarily to look for a job right away. First, they need to get settled. “Settlement agencies will help with finding a place to live, getting kids registered in school, learning the area and how to get around on transit. Once people get used to their new surroundings and routines become established, they are ready to enter the workforce.
EXPLAINING WORKER RIGHTS AND RESPONSIBILITIES
Depending on where an employee came from, the rights and responsibilities of working in Canada may be new to them. “When you have someone new to Canada on your team, you really need to emphasize the rights of workers—the right to know, the right to participate, and the right to refuse unsafe work,” says Smith. “Understanding these rights is particularly important for new workers because they need to understand that they will not be punished for asking questions or pointing out a hazard.”
In addition to their rights, new workers also need to understand their responsibilities, such as using required personal protective equipment and reporting hazards when they see them. Ensure that all new workers, whether new to Canada or not, receive health and safety awareness training that covers this information. Employers must also provide a proper orientation so that new workers become familiar with the property and facility, along with training on how to safely perform their duties.
“As an employer or supervisor, you need to explain the hazards that workers may encounter while doing their jobs so they are aware. You also need to explain the controls or procedures that are in place to protect them,” says Smith. “It’s important for workers to understand why they are supposed to do something a certain way. Often, it’s to prevent them from getting an injury or illness.”
Understanding these rights is particularly important for new workers because they need to understand that they will not be punished for asking questions or pointing out a hazard.” “
7 TIPS TO HELP NEW CANADIANS TRANSITION TO WORKING IN CANADA
Workers new to Canada have been filling the workforce gaps in several sectors, including hotels and hospitality. Support their transition and help them thrive with these seven tips.
1. Translate and demonstrate.
Translate training material, health and safety documents, and orientation information to help a new worker get started. In some cases, a simple translation app can go a long way to removing conversational language barriers as a new employee works towards fluency in English. Another way to overcome a language barrier is by demonstrating a task for a new worker. Show them how to do something and then observe them doing it to ensure they understand your instructions.
2. Use clear and simple language.
Avoid jargon, slang, idioms, and acronyms that may not be familiar to someone who is learning English. Speak clearly and slowly.
3. Use visuals.
Pictures or videos that demonstrate how to do something safely can be very effective when you are dealing with language barriers.
4. Consider cultural differences.
Some things that are common to most workplaces in Ontario may not be common to workplaces in other countries. “For example, some workers who are new to Ontario may not be used to asking questions or raising concerns,” says Smith. Ensure your health and safety orientation explains workers’ rights and responsibilities, with an emphasis on a worker’s right to know, ask questions, and participate in the workplace. Encourage involvement.
5. Provide social networking opportunities.
When someone is new to the country, it can often take time for them to build a social network and develop relationships, which is an important part of integrating into the community. Facilitate social networking by getting people together and organizing some events—at work and outside of work.
6. Pair new workers with a mentor.
Many organizations pair new workers with a mentor during their probationary period. For someone new to working in Ontario, a mentor can be a huge resource at work and outside of work. This is a great way for a new worker to learn about the organization’s customs and culture.
7. Schedule informal check-in meetings.
Communication is critical to building trust and developing relationships. A good way to foster open communication with a new worker is to have regular, casual meetings to see how things are going at work and home. Getting to know each other on a personal level will help build a solid foundation for a productive working relationship.
“Patience and kindness go a long way to help someone who is new to Canada adjust to their new home,” offers Smith. When you give a new employee the support they need to be successful at work, it also helps them build a successful life outside of work, which is what we want for all new Canadians. wsps.ca
New Build. New Design. New Opportunity.
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Efficient Footprint
With reduced square footage and upgraded finishes, our Rise & ShineTM prototype balances timelessness and originality to help maintain Comfort’s cost-effective model and efficient operating advantage.
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Flexible and Fresh Design
Backed by extensive consumer research and developer feedback, Rise & ShineTM offers three fresh design packages with pops of color and broad appeal to fit the needs of your local market.
CATERING TO INVISIBLE DISABILITIES
Part three of STAY ’s look at sustainable hotel operations. If the concept of invisible disabilities isn’t on your radar it should be. The hospitality and travel industries, and society as a whole, have done much to adapt to and understand the needs of those who face physical challenges.
BY ALLAN LYNCH
Thanks to the visibility and inspiration of Terry Fox, Rick Hansen and the 126 Canadian Paralympians in Paris we have seen people not restricted by physical impairment. It only makes sense to modify buildings, streetscapes and attitudes to help people flourish.
Invisible disabilities are less obvious. They include PTSD (think of the former military, police, and first responders as well as those who have survived a catastrophic event), ADHD, Autism, Dyslexia, Epilepsy, OCD, Tourette’s Syndrome, Chronic Pain (back issues, digestive disorders, bone disease, autoimmune disorders and more), gastrointestinal disorders and other illnesses.
In February 2025 Vancouver will host the Invictus Games. Invictus athletes represent a broad range of physical and invisible disabilities. Claire Smith, vice president of sales and marketing with the Vancouver Convention Centre (VCC), says invisible disabilities “are totally on our radar. Almost every meeting has a discussion on it. And if you think of Invictus, the range of disabilities athletes have, need to be supported in multiple ways. So, when you’re talking about
About 25 per cent of people have a disability, and 75 per cent of those people have an invisible disability or more than one.”
PTSD and sensitivity to light and sound, those are in addition to physical accessibility. We are investing a lot of time and resources into trying to do the best we can.”
Smith says, “Our company, PavCo (the Provincial Crown Corporation which owns and operates BC Place Stadium and VCC) has established an Accessibility Committee, conducted an accessibility audit and is in the final stages of hiring a senior manager of accessibility. This dedicated position will work with our teams to identify, develop and implement initiatives, programs and enhancements to support the varied needs of our guests.”
Given the noise of concerts and professional sports, BC Place has created a sensory room for those stressed by an event. BC Place also promotes service dogs on-site and provides Sensory Awareness Bags containing fidget tools and noise-cancelling headphones to those who ask.
While still on the learning curve, Smith says one of the surprises for her arose from a staff audit. In preparing for the physical requirements of Invictus athletes, the VCC not only audited their building, they audited staff. “It was super interesting and illuminating how, many of our staff identified that they had invisible disabilities. That was a differentiator because you make assumptions. People are showing up and doing their work and you’re not actually thinking if they are supported properly or struggling quietly. And we didn’t know because we never asked.” It was then the VCC realized “our employees are a reflection of society” which helped quantify the magnitude of invisible disabilities of their clients.
Knowing this goes to the sustainability of staff and operations. And by extension, this knowledge helps guests, whether a free independent traveller or corporate client.
Overcoming these disabilities is the new frontier in diversity, equity and inclusion conversation.
Jess Stainbrook, executive director of the Invisible Disabilities Association, says “About 25 per cent of people have a disability, and 75 per cent of those people have an invisible disability or more than one.”
Stainbrook suggests hotels start with awareness and understanding to better accommodate people living with various invisible disabilities. And consider, “Construction materials can even be a factor for people with chemical sensitivities or allergies. The off-gassing from new carpet or drywall is tremendous.”
This is an area which some hotels began addressing 20 years ago when environmental sensitivities were starting to be understood. That was the same time properties began eliminating smoking rooms. The then-new Fairmont Waterfront Vancouver got so many special requests—an average of 17 a day—to remove anything which could trigger an allergic reaction that they developed a featherless floor. At the same time, the Fairmont Vancouver Airport worked with an allergist at the University of British Columbia to create a floor for allergysensitive travellers. They removed feather pillows, scented bath and cleaning products, and washed linens using a higher heat to help guests with sensitive skin.
Currently, Hilton Hotels is addressing invisible illness starting at check-in. A Hilton spokesperson says, “Hilton has made significant investment in the technology within the Hilton Honors app, allowing guests to leverage our ‘straight-toroom’ digital self-service tools. Where available, these tools include the ability to choose your room, digitally check-in, utilize our Digital Key to open guest room doors with mobile phones, and digitally check out. With this technology, guests who are neurodiverse or require additional accommodation can adapt their travel experience based on their specific
needs. “For example, this could include selecting a room away from elevators or highly trafficked areas or bypassing the front desk to avoid waiting in the lobby, if that may be a concern. Additionally, individuals who are blind or have low vision engage with their environment through touch. With Digital Key, any guest can use their own mobile device to tap a button and unlock their door, making access to their room quick and accessible. Currently, 82 per cent of hotels globally offer Digital Key.”
Additionally, Hilton’s Confirmed Connected Rooms allows anyone travelling with a caregiver to have their own room while guaranteeing their companion is on the other side of the connecting door.
Hilton has also worked with Meeting Planners International to help create meeting environments inclusive of and accessible to all individuals regardless of nuance or need. Hilton’s Event Ready Playbook provides a checklist which helps meeting planners be more inclusive of neurodivergent individuals. Among the suggestions are providing sensory-avoidant individuals with noise-cancelling headphones, sunglasses, printed materials or “fidget kits;” offering quiet spaces with low lighting away from high-traffic areas; providing advance notice of high-impact moments such as strobe lights, fog machines, air horns, which may overwhelm sensory-sensitive individuals; and briefing team members on non-apparent disabilities.
The Hilton measures mirror those suggested by The Neu Project (TNP). TNP is a group of travel professionals focused on making the world “more welcoming and productive for neurodivergent communities.” They have developed papers and checklists which can be helpful for hoteliers and event organizers in developing procedures and products to meet the special needs and challenges of this segment of travellers.
The TNP’s checklist addresses inclusive colour palettes, avoiding neon and bright red, which can over-stimulate; thoughtful acoustics—again to avoid sensory overload or shock from unintended high frequencies like passing a mike in front of a speaker which can set off Tourette Syndrome ticks; the impact of food smells; and preference for single person and gender-neutral washrooms.
TNP has ideas on preferred F&B solutions, guest amenities (like weighted blankets, stuffed animals and cushions), and visual identifiers for support staff. Their basic message is, “There is no wrong way to try to be more inclusive.”
At Chelsea Hotel, Toronto Jim Stewart, director of human resources, says they engage in staff training so all team members are aware of the Accessibility for Ontarians with Disabilities Act (AODA) and maintain a dedicated AODA committee. “All new colleagues are trained on how best to serve guests with disabilities (visible and invisible). Last year,
as part of our Unconscious Bias training, we reviewed the elements of AODA and serving guests with disabilities (with an emphasis on invisible disabilities).”
Tess Clarke, Chelsea’s director of rooms, says, “While we don’t have a quiet room, we do have quiet spaces in the hotel.” And they offer guests two types of accessible rooms. The Fully Modified Accessible Room is close to elevators; has a wider door and passageway; bedside phone; pulldown door handles; strobe lighting for fire alarms for hearing impaired; lowered thermostat, closet rod and peephole; and modified bathroom. The Modified Accessible Room is located at the end of hallways; has a king bed, wide door and passageway; and roll-in shower and bench.
Helping to make the travels and experiences of those dealing with invisible disabilities is being embraced by a diverse array of corporate Canada. Sobeys stores, for example, suggest certain shopping hours when crowds are lowest and they can adjust lighting and sound to create a less stressful experience. In September TD Bank launched a program to make various materials more easily read by colour-blind clients. And facilities like Vancouver International and Halifax Stanfield International airports have adopted a sunflower program where travellers can discretely signal their need for additional support by wearing a special lanyard or pin. The program also provides an app and hearing loops to help travellers with hearing aids or cochlear implants.
The bottom line is that while a significant percentage of guests, clients and staff may be dealing with one or more invisible disabilities, it doesn’t require a capital outlay by the host property to address. A lot of the best practices focus on staff training and a review of operational procedures. Additionally, creating inclusive policies has been shown to help with staff recruitment and retention.
Coast Bastion Hotel • Nanaimo, BC
Coast Capri Hotel • Kelowna, BC
Coast Canmore Hotel & Conference Centre • Canmore, AB
BUILDING A CANADIAN HOSPITALITY LEGACY
Sukhdev Toor, Manga Hotels, and a family vision for the future
STORY AND PHOTOS BY STACEY NEWMAN
Manga Hotels, with 31 hotels comprised of 5,800 rooms and 19 restaurant properties across Canada and the United States, has established itself as a key player in the hospitality industry by taking a bold, visionary approach and embracing innovation and sustainability.
The story of Manga’s growth is about family ties, risk-taking, forethought, and attention to detail. At the head of Manga Hotels is Sukhdev Toor, whose journey from a civil engineer to a hotelier is marked by a willingness to learn from experience and adopt new technologies. Together with daughter Neelu Toor, who is now joining the leadership team, they share insights into their family’s journey, the evolution of Manga Hotels, and the company’s capacity for growth and adaptation.
FROM CIVIL ENGINEERING TO ENTREPRENEURIAL VISION
Sukhdev Toor’s entry into the hotel business in Canada was not planned. Arriving in 1983 with a degree in civil engineering from the Punjab region
of India, Sukhdev had to change course upon realizing that Canada’s economy was in a downturn and jobs in his field were scarce. “I came to Canada in the early 1980s as a young married man with high hopes of getting a good job,” he says. “But we went through a very tough recession at the time. There were no jobs,” he explains.
With a young family to support, Sukhdev initially juggled various jobs, from factory work to driving a limousine at the airport in Toronto on weekends while attempting to pursue an MBA at the Univer-
Sukhdev Toor
sity of Waterloo. He soon realized that building a future in Canada required a different path. “I was a young guy, 25 years old... either I work here or go back home. There was no in-between,” he recalls. This led him to the real estate market, where he first purchased a house in Ontario and then, sensing an opportunity, ventured into the motel business. “I took my equity out, and bought a small motel in St. Catharines… then I wanted to learn more about real estate. I did a real estate course while in St. Catharines.”
“
I came to Canada in the early 1980s as a young married man with high hopes of getting a good job.”
STRATEGIC LEARNING AND EXPANSION
Sukhdev’s decisions were influenced by his keen sense of timing, his willingness to learn, and his boldness. His foray into British Columbia in 1989 was based on observing market cycles and understanding regional differences in economic performance. It was here that Sukhdev began to fine-tune his approach to buying and selling properties.
Recognizing opportunities to purchase properties during economic downturns that would appreciate was a strategic mindset, combined with a relentless work ethic, allowed him to expand rapidly and acquire several properties across British Columbia.
Sukhdev was able to buy properties at lower prices, improve them, and sell them for a profit. “The economy came back very strongly,” he remembers.
By the mid-1990s, the Toor family had moved back to Ontario as the economic conditions in the province and the subsequent market presented new prospects. He began acquiring larger properties in Ontario, such as the Best Western Conestoga in Kitchener and later ventured into more branded hotels with Comfort Inns and Howard Johnsons across various cities. By 1997, Manga Hotels had nine properties, and the company was well-posi-
Sukhdev Toor and Neelu Toor
tioned for its next growth phase. Sukhdev was the first to build a Hampton Inn in Canada in 1998, and he continued to expand with more branded properties across Ontario, the state of New York and Atlantic Canada.
EMBRACING DATA AND TECHNOLOGY FOR SUSTAINED GROWTH
A defining characteristic of Manga Hotels’ success is its early and enthusiastic embrace of technology, sustainability, and data analytics. Sukhdev’s decision to build Canada’s first LEED-certified hotel in the early 2000s exemplifies this forward-thinking approach. This investment in green technology was not merely for branding but stemmed from a genuine belief in sustainable business practices. “We built a LEED hotel, which is certified for Leadership in Energy and Environmental Design and that has environmental savings and efficiencies.”
Current projects continue to reflect this commitment to sustainability and innovation. At a development in downtown Toronto, Sukhdev has invested heavily in geothermal energy systems and solar panels. “We had 40 boreholes. It cost us extra to do that,” he states. Geothermal boreholes are deep, vertical holes drilled into the Earth to access geothermal energy, which is the heat stored beneath the Earth’s surface. These boreholes are used to harness geothermal energy for various purposes, such as heating, cooling, and generating electricity.
Manga Hotels has always been willing to make significant upfront investments to ensure long-term efficiency and success, and in this case, to reduce its carbon footprint. “We are here to stay for the long term,” says Sukhdev of one of the core values of his company, which is contributing to both the present and the future within the business community and society.
USING DATA TO DRIVE DECISIONS AND MAINTAIN QUALITY
Manga Hotels has integrated data-driven decision-making across its operations to stay competitive and adapt to changing market conditions. Sukhdev highlights the importance of using technology to improve efficiency and enhance the guest experience. “We are using data in lots of ways, in our operations, for housekeeping, and for maintenance,” he explains. The company has adopted comprehensive data analysis tools to optimize everything from guest services to internal operations. “If utilized properly, it makes life easier and response time much less.”
Neelu Toor is Sukhdev and his wife’s firstborn daughter. After a successful legal career, she recently joined the company in a strategic leadership role. She adds: “We are very data-driven. Our business decisions are based on deep analysis. My father has been at the forefront of utilizing data to improve the business.” The use of data to inform decisions further demonstrates the blend of experience and the adoption of modern management practices that set Manga Hotels apart.
NEELU TOOR, ON STEPPING IN
Today, Manga Hotels continues to plan for growth, with Neelu Toor’s leadership as chief strategy officer and general counsel at Manga. “I became involved following a career shift,” says Neelu, who holds degrees from Cornell, Stanford, and Oxford. She was a partner at Davies Ward Phillips & Vineberg LLP, a leading Canadian law firm. “It’s a funny thing because
people ask me, ‘When did you start working in hotels?’ The truth is, I grew up in them.”
Neelu’s admiration, respect and love for her father is evident. She talks about how much it means to her and how much she enjoys working with him. “I’m very fortunate,” she says.
Neelu brings new viewpoints to the Manga business plan. She wishes to bring an even more structured, governance-focused approach to the company while tapping into her background in mergers and acquisitions. “I bring organizational mindedness and a different perspective to the table,” she explains.
Sukhdev is excited about Neelu’s future with the company. “She learned the ropes before she came here,” he says, acknowledging her experience and the new energy she brings to Manga. “She can take us to much higher heights.” Reflecting on their relationship, he adds, “I could not do everything alone. It’s very, very important in business to be able to work with other people. And lead them by working with them.”
EVOLUTION AND EXPANSION, A VISION FOR THE FUTURE
Sukhdev’s philosophy has always been about preparing for future shifts in the industry and looking farther down the road than conventional business thinkers would have us do. “From experience, you learn if you want to stay longer term, you need to have the quality of business required to be truly sustainable,” Sukhdev notes. “You need to have good quality buildings. You need to listen to what our guests demand to be on the cutting edge.”
Neelu describes this forward-looking mindset as part of what makes her father a visionary in the industry. “He’s looking ahead of everybody else because he truly believes that as the hospitality industry changes, we can grow. We can expand where those opportunities lie and capture them,” she explains. “It’s a bit of luck, but it’s also a lot of research and deep knowledge.”
Manga Hotels is actively expanding, with several major projects underway. These include four new hotels in downtown Toronto and a significant build at Toronto Pearson International Airport. “We have 1,200 rooms in downtown Toronto alone under development,” Sukhdev states. →
PHILANTHROPY AND COMMUNITY IMPACT
Beyond business, the Toor family is committed to community engagement and philanthropy. The Toor Family Foundation was established to centralize their philanthropic efforts, with a particular focus on challenging social stigmas and supporting health and cultural initiatives. One significant partnership is with the Centre for Addiction and Mental Health (CAMH) in Toronto. “Mental health is health,” Neelu states. “We want to help disassociate the stigma attached to mental health within the South Asian community.” The family has also made contributions to the Royal Ontario Museum to establish a Sikh Art and Cultural Centre, furthering their commitment to cultural preservation.
A VISIONARY APPROACH
As Manga Hotels continues to grow, both Sukhdev and Neelu emphasize a balanced approach to risk and opportunity. Sukhdev puts it succinctly: “Risk management is crucial. There’s no risk, no reward, no guts, no glory. At the same time, you need to take calculated risks.”
The company’s latest projects, including multiple properties in downtown Toronto and a diverse mix of hotels and residential developments, are a testament to their ability to adapt and flourish. “We want to make sure we grow where we have sustainable growth,” Sukhdev explains. “Not growing just for the sake of growth, but to build this strong foundation.”
CORE VALUES AND AMBITIONS
Risk management is crucial. There’s no risk, no reward, no guts, no glory. At the same time, you need to take good risks.”
Neelu adds that the company has recently completed eight strategic acquisitions in the last year, demonstrating a strong growth trajectory.
While hotels remain at the core, the company has diversified into other areas, such as residential rentals in Halifax, Brampton, Toronto and Calgary.
“We’re building apartments as well,” Sukhdev says.
“This has been a banner year for acquisitions.”
The strategy is to maintain a balanced portfolio that allows Manga Hotels to adapt to changing market conditions.
The company has also successfully invested in food and beverage, founding eight locations of its restaurant concept across the country—The Cannery Kitchen & Social—as well as owning 11 additional F&B outlets Canada-wide.
Manga Hotels’ success is driven by a unique blend of visionary leadership, a commitment to sustainability, and a data-driven approach to decisionmaking. Sukhdev Toor’s ability to foresee trends, take calculated risks, and embrace technology has allowed the company to expand strategically and sustainably. As Neelu steps into a leadership role, she brings a fresh perspective that balances her father’s entrepreneurial spirit with a corporate governance mindset, ensuring that Manga Hotels will continue to evolve in a competitive market.
As the Toor family looks to the future, their focus remains on delivering quality, leveraging technology, and growing their presence in key markets. “We are here for the long term, and we intend to keep building a legacy,” says Sukhdev, summing up the ethos that has driven Manga Hotels from its humble beginnings to its current status as a leading force in the Canadian hospitality industry.
The name “Manga” is more than just a company brand; it is rooted in the Toor family’s history. Sukhdev explains how the name was inspired by their ancestry. “Around 1990, I asked my father to see our family tree with the names of our forefathers. The first recorded Toor from our family is from the 17th century, and his name was Manga.” This decision reflects the deep sense of family pride and heritage that fortifies the Toor family’s approach to business, as they continue to build a legacy that honours their past while looking boldly to the future.
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Neelu Toor, Sukhdev Toor, executive chef/F&B director Tony Fernandes, and general manager Ashok Narula at the Crowne Plaza Toronto Airport
Kimpton Saint George Hotel
Crowne Plaza Saint John Harbour View
avid Hotels Toronto - Vaughan Southwest
Holiday Inn Hotel and Suites Montreal Centre-ville Ouest
HOTELS OR BUST: VANCOUVER’S MAKEOR-BREAK MOMENT FOR FUTURE EVENTS AND TOURISM
BY JIM BYERS
Speed up permits. Provide federal loan guarantees for hotel developers. And find a way to make sure people understand what a new hotel can do for a city or neighbourhood.
Taylor Swift is coming to Vancouver this year. The World Cup of Soccer is rolling into town in 2026. But the city has actually lost hotel rooms.
With major events on the way, and bids for new ones surely to come, a 2023 Vancouver hotel study released by Destination Vancouver says 20,000 new hotel rooms are needed in Metro Vancouver by 2050. Ten thousand of those rooms are needed just in the city of Vancouver, which isn’t exactly brimming with empty development parcels.
It’s doable in theory, but it’s worth noting that Vancouver has actually been losing hotel rooms, not building new ones.
“Our historic peak of hotel rooms was in 2002,” says Gwendal Castellan, manager, sustainable destination development, at Destination Vancouver. “We’ve had a steady loss of rooms since then.”
A Destination Vancouver study last year said the city has lost 1,500 rooms since 2010. The pandemic removed an additional 550 rooms from Vancouver’s hotel inventory.
Building new hotel rooms “is crucial for our global destination competitiveness,” Destination Vancouver president and CEO Royce Chwin offered after the 2023 study was released.
“Lack of available hotel rooms will make visiting Vancouver even more expensive, and the city will be less competitive in attracting major conferences, large sporting events and leisure group travel. Vancouver is running short on time to prepare for the influx of visitors and the economic impact they contribute to the city. Those visitors will just go elsewhere,” he says.
City government executives, tourism board representatives and business people serve on what’s called the Hotel Development Task Force, which is looking at ways that Vancouver can satisfy demand for major events already booked, and continue to lure big conferences, concerts and sporting events to the city and region in the next quarter-century. A new set of recommendations is expected sometime in October.
“The task force is developing priority issues that can expedite the planning, approval and building of new properties, which include but are not limited to zoning and rezoning, height considerations, taxation on highest and best use, air space not to be included during planning and building,
Short-term rentals are a big issue in the city. They make up roughly 23 per cent of the total supply of hotel rooms in the city, but the province is cracking down on shortterm rentals in an effort to find more housing for local residents.”
↑
Ingrid Jarrett, president and CEO of the B.C. Hotel Association and co-chair (with Chwin) of the Hotel Development Task Force
recalculating FSR (floor space ratio) for front and back of the house space, compared to residential development,” Ingrid Jarrett, president and CEO of the B.C. Hotel Association and co-chair (with Chwin) of the Hotel Development Task Force, says in an email exchange with STAY Magazine. “Additionally, we’re working to ensure the contribution of accommodations with multi-use and commercial businesses are acknowledged for the value they bring to the community. For example—residential/accommodation and commercial in one building, and ensuring affordable housing is also included.”
Castellan says short-term rentals are a big issue in the city. They make up roughly 23 per cent of the total supply of hotel rooms in the city, but the province is cracking down on short-term rentals in an effort to find more housing for local residents. If those units become unavailable to the travelling public, it will have a major effect on the city’s ability to host big events, he says.
“Over the past five years, especially during the pandemic, many accommodation properties were
purchased by the government and repurposed from hotels or motels into long-term housing,” BCHA’s Jarrett says. “The impact of this, along with the growing economy of travel and tourism has resulted in high demand and not enough supply in the market for Vancouver and several other cities in BC.
“Working together with Destination Vancouver and the City of Vancouver we are looking at what kind of accommodation, where and how many are required to rebalance the accommodation sector with the anticipated growth included.”
HOTELIERS SAY, ‘SPEED IT UP!’
It’s great that Vancouver wants more hotel rooms, but Marie-Pier Germain, vice-president sales and marketing at Germain Hotels, says the government needs to take action.
“They don’t seem very keen on providing incentives to help make that happen,” she says. “Something is going to have to give.”
One way to get more hotels to build sooner is through office conversion, something her group has done in the past in Montreal.
“Office conversion to hotel is something we have mastered. It works but only if you have the right floor plate,” Germain tells STAY magazine. “You need windows, for example. The costs of converting a building from office to hotel are about the same as a new build, but it’s much faster.”
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↑ Marie-Pier Germain, vicepresident sales and marketing at Germain Hotels
Given how office workers in Canada have been slow to return to in-person employment, perhaps shifting a relatively empty office space to hotel would work in Vancouver.
Vancouver’s approval process is particularly slow compared to other cities, says Dev Shamsiek, general manager of the splashy, sophisticated Azur Legacy Collection Hotel in downtown Vancouver. The property opened earlier this year on a site that was home to a long-time Vancouver men’s tailor shop and features beautiful art work and a buzzy rooftop bar.
Azur Legacy Collection Hotel is part of Executive Hotels and Resorts, which also runs the Executive Le Soleil and the Parker Hotel in Vancouver, as well as the Cosmopolitan in Toronto and other hotels.
“We have built in New York. That was a new development project as well, I would say that was in 2017, with our Executive Hotel Le Soleil,” Shamsiek says. “We haven’t had as many challenges (in New York) as we experienced in Vancouver. In midtown Manhattan you would think you’d have a lot of restrictions as well, but it wasn’t as challenging as Vancouver.”
FAST-TRACKING AND OTHER IDEAS
Shamsiek says if he was a developer and had the option of building a residential or a commercial building, he’d check the residential box because of the quick ROI.
“You build, and you pretty much sell all the units in a year,” he says in an interview. “With hotels, unfortunately, you have to think about operating. It’s not a short-term plan, it’s a longterm plan.
“In order for the city to incentivize the hotel operators or developers to build a hotel, they also have to consider the feasibility for the developers, he says. “Fast-tracking (of approvals) is one of the main things. Fast-tracking would be welcome for hotels.”
Castellan says one way to encourage more hotel building is to add density, or reduce fees. “But we have to balance that with the budget.”
Authorities are looking not only at what the city of Vancouver could do to help, but also what other levels of government might be able to offer.
“It could be that the province or the federal government could create conditions to make it easier for developers to move forward with hotel projects,” Castellan says.
The feds, through CMHC, are providing loan guarantees for developers to develop housing. Maybe we could use those existing mechanisms to speed up hotel work.
“The most challenging period for hotel financing is from the development application to the completion of construction and the first couple years of operations. Hotels are carrying much higher loan costs. Once they’re operating they can refinance, and they become more sustainable.”
Asked if the city could rezone land to free up more space for hotels in Vancouver, Shamsiek says a lot goes into that sort of decision, and that rezonings require public consultation.
“But the city definitely needs to work with residents and developers to fast-track that rezoning/approval process. On top of that, as a developer or a hotelier myself, we look into the seasonality of the business. For residential or longterm rentals, you don’t necessarily worry about it. You have consistent tenants throughout the year. With a hotel you have the winter season, and in Vancouver the winter season seems to be pretty harsh.
“It’s getting better, but hotels run 50-60 per cent occupancy in December or January every year. For larger hotels it’s very crucial to sustain their staffing level over the off-season.
Azur Legacy Collection Hotel
↑ Dev Shamsiek, general manager of Azur Legacy Collection Hotel in downtown Vancouver
Unfortunately, what happens now is most hotels end up laying off people for two or three months in the winter season and then re-hiring them.
“There could be an incentive for sustaining employees over the low season because it’s not good for the government when people are laid off and sitting on EI for several months every year. It’s still costing the government the same amount of money.”
THE VALUE OF HOTELS
Castellan says there’s a great opportunity to reshape the perceptions of what a hotel means to a community.
“I think sometimes there’s this idea that a hotel has no connection to the residents. The rooms may not be something they see as net value. But the reality is there’s probably a lot more value created directly and indirectly. Visitors spend more per day when they’re in a residence, so they have a significant impact in the immediate area of the hotel.”
“Tourism officials understand how hotels spark city life,” Germain says. “But not all government ministries seem to feel that way, or haven’t thought about it.
“The economy is a big chain,” she says, “and every piece of that chain is important. Sometimes I find tourism isn’t seen as important as they aren’t the highest-paying jobs in the country, and tourism isn’t seen as an industry that contributes. But it’s totally the opposite. Hotels help provide a sense of community. They’re a place to gather and meet people and understand their culture. It’s all part of what we do as hotels.”
Yours truly was in Montreal’s Griffintown in the summer and stayed at the Alt Hotel, part of Germain Hotels. The area wasn’t exactly thriving 10 years ago when the Alt opened, but the hotel has helped bring more people to a part of the city that is now highly desirable.
“They’ve torn up the street four times since we opened” to replace various bits of infrastructure, Germain says with a laugh. “Now we have all these new condos and shops.”
“I always think about hospitality being the gem of the neighbourhood,” Shamsiek says. “You are bringing new business opportunity to the neighbourhood. A hotel helps restaurants, coffee shops. It makes it feasible for businesses to operate in a neighbourhood. It makes things lively.”
THE EDGE OF NEXT YEAR
CANADIAN HOTEL INDUSTRY OUTLOOK FOR 2025
Hotel valuations, market dynamics, deflation; regulatory, legal, and financing environments; understanding the guest experience, and the changing labour landscape—there are many important trends for the hotel industry to consider as we look to the edge of next year. What will 2025 bring for hoteliers and industry investors? At STAY Magazine, we have interviewed some of the top minds and stakeholders in the Canadian hotel sector for their predictions. Here is what they have to say…
BY STACEY NEWMAN
The Interviewees
BRIAN FLOOD
BRENDON BERNARD
JESSI CARRIER
LAURA BAXTER
CARRIE RUSSELL
BRIAN LEON
BILL DE HAAN
RAY GUPTA
ALNOOR (AL) GULAMANI
Bayview Group of Companies
PARISA HURST
HOTEL VALUATIONS, REGIONAL AND MARKET TRENDS
WHAT DO YOU EXPECT FOR
HOTEL VALUATIONS
IN CANADA IN EARLY 2025? WHICH REGIONAL MARKETS IN CANADA WILL SEE THE BIGGEST CHANGES, AND WHAT WILL DRIVE OR SLOW THEIR GROWTH?
Hotels saw significant increases in value post-COVID based on strong income performance. Despite higher interest rates during that period, the impact on hotel capitalization rates was largely offset by the strong outlook for revenue growth at that time; hotels outperformed all other commercial real estate sectors during that period. Going into 2025, we expect the impact of lower interest rates on capitalization rates will be limited as hotels have now moved into a period of normalized revenue growth. Value growth in 2025 will be largely based on the ability of assets to grow income going forward.
BRIAN FLOOD, EVP & PRACTICE LEADER, HOSPITALITY AND GAMING, CUSHMAN & WAKEFIELD
Markets are often driven by the amount of capital spending in the region. Examples include markets in Southwestern Ontario where billions are being invested in EV technology. Other areas include markets such as Alberta and Northern Ontario which have seen strong gains in 2024 based on a revitalized natural resource market and stronger economic conditions.
BRIAN FLOOD, EVP & PRACTICE LEADER, HOSPITALITY AND GAMING, CUSHMAN & WAKEFIELD
There have been some deals in Alberta, specifically Calgary, that show confidence in the future of the province and city, specifically the purchase of the Residence Inn by Marriott Downtown Beltline District. At a 6.5 per cent cap rate, this would indicate that the buyer sees an upside in the market which is justified based on the new BMO Convention Centre expansion opening and the Calgary Events Centre that has just broken ground. InnVest’s acquisition of a Banff hotel shows continued confidence in the resort market in Alberta as well.
The lack of trades in BC also tells a story as hoteliers are benefitting from the uptick in performance and while there are interested buyers the gap between buyers’ and sellers’ pricing expectations is still significant. There are buyers that want to own in the province, but very few sellers that want to divest. The opportunity in the future, especially in Metro Vancouver, will be new projects that developers outside the hotel space would like to include as part of their mixeduse projects but aren’t particularly interested in owning a hotel long term. There are numerous projects of that nature and it will be interesting to see if a market for forward sales of proposed hotels emerges.
CARRIE RUSSELL, SENIOR MANAGING PARTNER, HVS
Ontario continues to dominate, accounting for 55 per cent of the annual transaction volume by Q2 this year. The province’s diverse economic base and strong hotel performance make it highly attractive. We’ve also seen significant interest in Northern Ontario due to its unique demand base, which performed well during the pandemic. It’s difficult to build in these more remote markets, which is driving interest in existing assets. British Columbia and Alberta follow Ontario in terms of transaction volume. Alberta, especially Calgary, is seeing substantial trade activity as investors remain bullish on the market. Atlantic Canada, particularly in cities like Halifax and Moncton, is also attracting attention due to the availability of direct flights and relatively higher yields.
Much of the recent hotel feasibility work has centred around Calgary. Alberta, especially Calgary, is seeing a resurgence in interest due to macroeconomic and demographic trends, such as interprovincial migration and the influx of companies opening offices there. The city’s strong economic climate, bolstered by developments like the new convention centre and event spaces, is driving interest in new hotel developments and transactions.
ZACH PENDLEY, REAL ESTATE AND HOSPITALITY TRANSACTIONS AND VALUATIONS LEADER, EY CANADA
REGULATORY AND LEGAL CONCERNS
ARE THERE NEW REGULATIONS (FEDERAL, PROVINCIAL) THAT HOTEL OWNERS SHOULD CONSIDER?
WHAT LEGAL AND REGULATORY ASPECTS SHOULD OWNERS FOCUS ON IN SELLING A HOTEL ASSET?
Hotel owners should be aware of increasing provincial and municipal restrictions on short-term rentals in the areas they are operating in. Cities such as Vancouver, Toronto and Montreal have implemented stricter regulations on platforms like Airbnb, including limitations on operational areas, rental duration, licensing requirements and heightened fines for non-compliance. These measures which are aimed to mitigate housing shortages and preserve longterm rental options, will likely result in increased demand for hotels.
Additionally, hotel operators should anticipate continuing changes and scrutiny regarding tax regimes and real estate ownership disclosure and reporting laws at both the provincial and federal levels, continuing the trend that we have seen in the past few years. Owners should also closely monitor shifts in provincial and federal governments, as it may lead to additional regulations related to corporate taxation, labour laws and environmental standards, further complicating compliance for hotel owners.
PARISA HURST, PARTNER, BLG
I recommend that before marketing hotel assets, to mitigate deal risk and timing issues, an owner who is looking to sell should consider several legal and regulatory matters:
• Employee Liabilities: Understand the implications of employee plans, collective agreements and union liabilities, as these may affect the transfer process and financial obligations in the purchase and sale agreement.
• Management Agreements: Review existing management agreements, particularly with well-known brands, to identify any restrictions on property sale or transfer. Clear communication with the brand is crucial to navigating these limitations.
• Purchaser Vetting: Ensure that prospective buyers can meet ongoing obligations related to collective agreements, management contracts and regulatory commitments, to minimize the risk of delays or transaction collapse.
• Tax Implications: Gain a comprehensive understanding of the tax implications of the transaction, identifying the most tax-efficient sale structure and exploring available incentives or exemptions.
PARISA HURST, PARTNER, BLG
LENDING AND FINANCIAL ENVIRONMENT
HOW COULD CHANGES IN THE CANADIAN DOLLAR'S VALUE AFFECT CANADIAN LENDING FOR HOTELS? HOW DO YOU THINK LENDING IN CANADIAN HOTEL MARKETS MIGHT CHANGE
IN 2025?
We are already seeing some effects of recent interest rate reductions, such as increased availability and flow of capital. There’s a renewed sense of optimism in the capital markets with these reductions. Sellers who were previously hesitant to bring assets to market due to high costs of capital may now test the waters, expecting more buyers to source the capital needed for acquisitions. By late 2024 and into early 2025, I anticipate a more active market with a larger pool of buyers and sellers.
Additionally, borrowing conditions are evolving, making financing and capital for hotel development projects more accessible. I’ve seen hotel owners who paused projects in the past 18 months now re-engaging in conversations about their capital stack, determining whether they can secure the necessary debt and equity to proceed. While we won’t see a massive spike in new developments in the next quarter, I do believe we will witness announcements and groundbreaking for new projects by the end of this year and into early 2025.
ZACH PENDLEY, REAL ESTATE AND HOSPITALITY TRANSACTIONS AND VALUATIONS LEADER, EY CANADA
While the industry is susceptible to exchange rate fluctuations given the amount of foreign leisure and business travel, the diversification within the traveller composition across single assets and hoteliers’ overall portfolios assists in reducing NOI volatility.
Given the current economic environment, there are tempered expectations in the short to medium term, but we expect the lending market to continue to support established operators that have proven experience in weathering volatility in the economy. Declining interest rates against the backdrop of easing inflation pressure over the last year has improved debt service parameters.
BILL DE HAAN, VICE PRESIDENT, COMMERCIAL REAL ESTATE MARKETS, RBC
GUEST EXPERIENCE AND TECHNOLOGY
HOW DO YOU SEE GUEST EXPECTATIONS AND NEW TECHNOLOGY CHANGING THE GUEST EXPERIENCE IN CANADIAN HOTELS IN 2025?
According to my assessment, the number one guest expectation remains “value for money”. Guests want their journey throughout the hotel booking stage and stay to be hassle-free, with less time spent on chasing the best value for money and more time spent on enjoying or taking care of business. Technology certainly plays a major role in this, be it us providing the best rate for the room they are looking for, efficient check-in and check-out or guests submitting and us fulfilling their special requests.
BRIAN LEON, CEO, CHOICE HOTELS CANADA
It’s getting tougher to manage guest expectations. Our guests demand more service (which increases labour costs) and selection of hotel products. Guests demand the latest technology and are increasingly loyal to brands that provide the latest tech.
RAY GUPTA, CHAIRMAN, CEO AND FOUNDER, SUNRAY GROUP
The significant growth in the use of AI to research and plan trips makes our online presence so much more important. We will continue to invest in curating unique travel experiences for our guests and communicating these through our websites and social media platforms.
ALNOOR (AL) GULAMANI, PRESIDENT, BAYVIEW GROUP OF COMPANIES
LABOUR MARKET AND STAFFING CHALLENGES
HOW ARE HOTEL, TRAVEL AND TOURISM ORGANIZATIONS HANDLING STAFFING CHALLENGES, LIKE ATTRACTING AND KEEPING TALENT, IN THE COMING YEAR?
The labour market environment for employers in the tourism sector has become easier over the past year. Employers across the economy have fewer job openings than in years past, with hospitality and tourism showing larger declines than others. On Indeed, job postings in hospitality and tourism were down a full 38 per cent year-over-year in early September and were tracking 21 per cent below their pre-pandemic levels. Fitting with the cooling demand, overall employment in traveller accommodation was flat over the past year. Wage growth in the accommodation and food service industry overall has been a bit stronger than these other trends, as of June up 2.9 per cent year-over-year.
That said, under the surface of these national-level numbers, some employers in the sector are likely still facing staffing difficulties. One trend evident on Indeed is that while job postings in Toronto, Vancouver, and Montreal, as well as other Ontario cities, have come down substantially, demand remains elevated in smaller cities and rural areas. Businesses struggling to find staff have to find ways to make their organizations attractive to job seekers. This can include offering competitive pay, and perks like scheduling flexibility, as well as ensuring a positive workplace environment, which is essential for retaining employees.
BRENDON BERNARD, SENIOR ECONOMIST, INDEED CANADA
HOTEL ACQUISITIONS AND TRANSACTIONS
HOW HAVE RECENT HOTEL ACQUISITIONS, OR SALES CHANGED THE COMPETITIVE LANDSCAPE IN CANADA, AND WHAT MIGHT HAPPEN NEXT? DO ANY RECENT HOTEL DEALS IN CANADA STAND OUT TO YOU? WHAT DO THESE DEALS SAY ABOUT THE FUTURE?
The recent acquisitions, at least in Western Canada, are reflective of a typical transaction environment for the country that is predominantly Canadian buyers. We aren’t seeing institutional players or public companies making moves into the space; however, as the office market continues to suffer there is potential that these investors see opportunity in the hotel space.
CARRIE RUSSELL, SENIOR MANAGING PARTNER, HVS
There have been some notable transactions in Montreal recently. For example, when Pandox decided to sell the InterContinental and DoubleTree hotels, we acted on their behalf. Both transactions were led by local groups interested in repositioning these assets. Despite some challenges around the availability of labour and the unique culture in Quebec, these deals were compelling on a price-per-key basis. Even though significant capital investments are required for these properties, they still represent excellent deals when considering the cost of replacement.
Another notable transaction was the sale of the Marriott in Ottawa. The city is experiencing a lot of new supply, and this deal stood out due to Manga Hotels’ plan to significantly reposition the asset. Overall, we’re seeing a trend where investors are willing to take on significant renovations to improve assets, which speaks to their confidence in the market. Ottawa is a market with an increasing hotel supply, including assets like Renaissance, Moxy, and AC hotels. The new supply and repositioning efforts suggest a competitive environment where hotels must differentiate themselves to capture market share.
The Residence Inn by Marriott Calgary Downtown/Beltline District in Calgary transaction is notable. [This hotel features 390 suites spread across 33 floors, making it the largest Residence Inn property by room count in North America]. It features a modern, appealing brand and concept. The hotel’s location, service offering, and recent build quality make it highly attractive to major hotel owners and sophisticated investors in Canada.
ZACH PENDLEY, REAL ESTATE AND HOSPITALITY TRANSACTIONS AND VALUATIONS LEADER, EY CANADA
PROFIT STRATEGIES AND COST MANAGEMENT
WHAT ARE YOUR PLANS TO BOOST PROFITS IN 2025?
Driving the highest level of success for our franchisees is the top priority for our team at Choice Hotels Canada, and we do this through a combination of optimizing revenue and identifying cost savings opportunities.
On the revenue side, we’ll continue to leverage the strength of our technology platforms in areas like revenue management, which has been a big area of success for us in recent years. We’ll support that by continuing to execute a multi-faceted sales and marketing strategy, and through maintaining focus on driving the traction of our Choice Privileges loyalty program.
On the cost side, our ‘book direct’ focus will continue to ensure we minimize our hotels’ distribution costs. We’ll also leverage our procurement team to ensure we’re making cost savings opportunities available for our hotels on top-quality products, whether it be for development of a new hotel, renovation of an existing one, or to support ongoing operations.
We also know that there is a direct correlation between hotel-level success and guest satisfaction, and this has been an area where we’re building on some strong momentum. We’ll continue our focus on driving up guest scores through a combination of hotel-level execution, program enhancements and in many of our hotels, renovation/upgrade plans to enhance their competitiveness.
BRIAN LEON, CEO, CHOICE HOTELS CANADA
Labour is the largest controllable expense in our portfolio. We regularly benchmark our hotel labour KPIs. We also plan to focus our efforts on acquiring assets more strategically that have in place income.
RAY GUPTA, CHAIRMAN, CEO AND FOUNDER, SUNRAY GROUP
Identifying and going after new market opportunities and continuing to grow loyalty from our existing customers.
ALNOOR (AL) GULAMANI, PRESIDENT, BAYVIEW GROUP OF COMPANIES
NEW DEVELOPMENTS AND RENOVATIONS
HIGHLIGHT ONE OF YOUR HOTEL PROJECTS OR RENOVATIONS IN CANADA IN 2025 THAT YOU ARE MOST EXCITED ABOUT.
It’s difficult to single out one specific project that we are most excited about, but what I would say is that I’m particularly excited about the new build properties we have in our pipeline, primarily with our Quality and Comfort brands. We’re going to see a big ramping up in our growth of new build hotels in 2025, which is a direct result of the decision we made to stay active in development through the pandemic. A number of those projects that we started back in 2020, 2021 and 2022 are now getting into the final stages of construction. So, we’re expecting that 2025 will be one of the most active years we’ve had at Choice Hotels Canada, in terms of new build openings.
BRIAN LEON, CEO, CHOICE HOTELS CANADA
Our most exciting project for 2025 is the highly anticipated conversion of our Delta Hotel to a Westin Hotel, Toronto East. This transformation will not only refresh the hotel’s aesthetic but also align it with Westin’s core values of wellness, relaxation, and superior guest service. With a complete overhaul of our fitness centre, spa facilities, and guest rooms, the renovation will deliver a premium experience that resonates with the discerning traveller, emphasizing wellness, comfort, and sustainability.
RAY
GUPTA, CHAIRMAN, CEO AND FOUNDER, SUNRAY GROUP
We are in the process of planning for a refresh of our Doubletree by Hilton Toronto Downtown and are really excited about the updated design.
ALNOOR (AL) GULAMANI, PRESIDENT, BAYVIEW GROUP OF COMPANIES
A NEW YEAR IS COMING, HOW’S THE VIEW FROM HERE?
WHAT IS YOUR GENERAL INDUSTRY OUTLOOK FOR THE FIRST PART OF 2025? WHAT ARE YOU LOOKING FORWARD TO? WHAT ARE YOU CONCERNED ABOUT?
The outlook for hospitality continues to be positive in 2025 with an improved economic outlook and lower interest rates. Markets continue to recover from the impact of COVID as corporate, and U.S. and international travel have also not fully recovered. Rising costs continue to be a concern given the impact of inflation over the last 3 years. We anticipate continued top-line growth, likely in the 3-4 per cent range over the next 12 months and continued value growth in the sector.
I anticipate continued demand in the hotel sector in early 2025, continuing the positive trend we have seen in 2024. While transaction volumes in major downtown markets, such as Vancouver, may remain low, peripheral markets are likely to see increased activity due to favourable growth opportunities. Major cities will continue to face challenges from aging assets requiring significant upgrades, as many operators postponed Property Improvement Plans (PIPs) during the pandemic to prioritize short-term survival. The ongoing market turbulence, coupled with high interest rates and limited access to capital, will continue to complicate efforts to address these deferred PIPs. Further, given the land scarcity in downtown areas restricting new development opportunities, I anticipate that new and existing hotel owners may look at conversion of underutilized office spaces into hotels as a trend that has emerged in the post-pandemic period.
PARISA HURST, PARTNER, BLG
My outlook is positive for the upcoming year, and I continue to enjoy what I would call a “return to normalcy”. For several years we had no idea what was coming, some of it surprised us to the downside, but in recent years we have been pleasantly surprised about the industry’s ability to manage through the inflationary environment and drive ADR growth to sustain margins. At the end of 2023, it was still a question mark as to whether the market could sustain the uptick in rates noted in 2022 and 2023. 2024 has shown that rates are continuing to grow at a pace that is slightly better than inflation. But as inflation moderates, we expect the pace of growth to moderate. For the upcoming year we are expected to operate at peak occupancy levels in Canada and RevPAR growth will be driven by modest increases in ADR.
CARRIE RUSSELL, SENIOR MANAGING PARTNER, HVS
Consumer appetite to travel remains high, whether it’s families on leisure trips, discovering new destinations or connecting with clients and colleagues for business. I believe 2025 will be a year of growth for the hotel industry, even though this might be a smaller increase than we all would like to see. We are looking forward to the continued growth of the Choice Hotels portfolio in Canada. We will continue adding value to our franchisees’ businesses and welcome more inbound group travel customers. The cost of doing business continues to rise, which compromises profitability, but we work closely with our hotels to find creative ways to retain and attract more investment into the hotel business.
BRIAN LEON, CEO, CHOICE HOTELS CANADA
Over the past two years, the Canadian labour market, and economy more broadly, has been adjusting to a higher interest rate environment. During this period, we’ve seen employer hiring appetite trend down, and the unemployment rate move up. These themes will likely carry over into 2025. At the same time, the recent easing of Canadian inflation and rate cuts from the Bank of Canada could mean reduced pressure from monetary policy, which could help bolster factors like consumer spending. That said, the prospect of a positive turning point doesn’t mean one will actually occur in the near term.
BRENDON BERNARD, SENIOR ECONOMIST, INDEED CANADA
BRIAN FLOOD, EVP AND PRACTICE LEADER, HOSPITALITY AND GAMING, CUSHMAN & WAKEFIELD
With inflation worries fading, more interest rate cuts are expected through the end of 2024 and into 2025. This should gradually provide financial relief to borrowers, setting the stage for improved economic growth and consumer spending in 2025. This trend is expected to translate into higher hotel demand. However, next year will likely be a year of two distinct halves, with the second half stronger than the first. Interest rate cuts are expected to take some time to translate into increased consumer spending and demand for hotel rooms. If that is the case, we expect average hotel occupancy to grow 1.5 per cent and 2.1 per cent in the third and fourth quarters, respectively, while the uplift in the first and second quarters is expected to be only marginal. On the other side of the RevPAR equation, ADR is forecast to increase 2 per cent in 2025, a deceleration from the previous year. This aligns with the lower inflation expected in the broader economy. Like occupancy, ADR growth is expected to be slightly stronger in the latter half of the year compared to the first.
LAURA BAXTER, DIRECTOR OF HOSPITALITY ANALYTICS – CANADA, COSTAR GROUP
We are forecasting for 2025 to be relatively flat to 2024. We have some concerns over upcoming collective bargaining agreements, contracts expiring and the negotiations related to the expiries.
RAY GUPTA, CHAIRMAN, CEO AND FOUNDER, SUNRAY GROUP
The general outlook remains positive overall; however, certain market segments are likely to struggle whilst others outperform. Domestic leisure will struggle as consumers struggle with cost-of-living pressures and households from interest rates and debt in a slowing economy. Group/meetings will be strong as there is a growing recognition of the value of in-person learning and networking. Business travel should also be strong as companies realize the importance of maintaining strong relationships through in-person contact. I’m looking forward to seeing lower interest rates after the extraordinary surge we have experienced in the last two years. I am concerned about Canada’s dropping competitiveness and loss of market share in the international tourism rankings at a time when the global travel market is growing.
ALNOOR (AL) GULAMANI, PRESIDENT, BAYVIEW GROUP OF COMPANIES
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SAFEGUARDING HOTEL INVESTMENTS
Behind the Scenes with BFL CANADA
BY STACEY NEWMAN
Chris Stefura, an account executive at BFL CANADA, has developed a deep understanding of the insurance needs and challenges faced by hoteliers across Canada. With nearly 12 years of experience in the insurance industry, including two years at BFL, Stefura is known for his approach of engaging in frank, comprehensive consultations to ensure clients are fully aware of their coverage options and potential risks.
In our STAY Magazine interview with Stefura, he shares his perspective on the evolving landscape of insurance in the Canadian hotel industry in 2024. BFL CANADA, a national brokerage firm known for its client-centric approach, is an established leader in providing insurance solutions aimed at securing future success for hoteliers across the country. BFL takes each hospitality business through a thorough risk assessment to pinpoint specific vulnerabilities and exposures, including property, liability, and cyber threats to develop highly customized solutions for hoteliers.
“The biggest question I always ask is, What is your catastrophic recovery plan?” says Stefura. He explains that this question helps tailor insurance policies to align with a client’s individual needs, whether that’s safeguarding an asset for future generations or ensuring quick financial recovery in the event of a disaster.
The insurance needs of the Canadian hotel industry vary widely across regions, given the diverse range of natural and man-made risks. Understanding these distinctions is essential for hoteliers to choose the right insurance coverage for
Chris Stefura
their specific location. For example, British Columbia is highly susceptible to wildfires and earthquakes. In 2023, wildfires in the Okanagan and Shuswap regions resulted in over $720 million in insured losses, highlighting the importance of inclusive wildfire coverage and earthquake endorsements as add-ons to standard property insurance policies for hoteliers in this province.
In contrast, Ontario hoteliers need to be more concerned with flooding and severe thunderstorms, which caused $340 million in damages in 2023. This highlights the necessity of overland water coverage in the province.
One real-world example of a hotel that has successfully navigated crises is the Wickaninnish Inn in Tofino, British Columbia. After severe storm damage in 2021, the inn used its comprehensive insurance coverage, including business interruption insurance, to cover repairs and manage operational downtime, ensuring a swift recovery.
Similarly, the Fairmont Chateau Laurier in Ottawa successfully mitigated a cyberattack in 2022 by having strong cyber risk insurance and a dedicated incident response team, demonstrating the importance of proactive cyber risk management in the hospitality sector.
The urgency of having a well-structured recovery plan is clear given the escalating frequency of natural disasters affecting Canadian businesses. According to the Insurance Bureau of Canada (IBC), insured damage from severe weather events reached over $3.1 billion in 2023, marking the fourth-worst year for insured losses in Canadian history (Insurance Bureau of Canada, 2023).
“In 2024, the insurance landscape for Canadian hotels is characterized by increasing claims due to weather-related incidents,” Stefura adds.
Industry statistics from 2024 indicate a steady rise in the frequency and severity of such claims, driven by more extreme weather events. This trend speaks to the importance of an insurance strategy that includes not just property and casualty insurance, but also specialized coverages tailored to the unique risks faced by hoteliers.
Key Insurance Coverages for the Hospitality Sector
COMMERCIAL GENERAL LIABILITY (CGL) INSURANCE
This coverage is crucial for protecting hotel owners against claims of bodily injury, property damage, and personal injury. According to IBC data, water damage, frozen pipes, and slip-and-fall incidents remain the most common claims in the hotel industry, leading to substantial financial losses for hotel operators.
PROPERTY AND BUSINESS INTERRUPTION INSURANCE
Beyond
Natural Disasters & Cyber Risks
The pandemic has reshaped liability insurance needs for the hospitality industry. Increased sanitation standards, vaccination policies, and evolving guest expectations have all influenced new types of liabilities. According to the Canadian Federation of Independent Business (CFIB), nearly 65 per cent of businesses, including hotels, have had to implement more stringent cleaning protocols and vaccination requirements for staff and guests to minimize the risk of disease transmission. These changes necessitate adjustments in liability coverage to protect against potential health-related lawsuits or claims. Hoteliers now consider additional endorsements for communicable disease liability coverage, which can cover legal fees and settlements in case of outbreaks or health-related incidents.
Property insurance covers the cost of repairing or replacing damaged buildings, furniture, fixtures, and equipment. Business interruption insurance is vital for hotels to recover from operational disruptions caused by natural disasters. Zurich Canada points out that approximately 40 per cent of small businesses, including hotels, do not reopen after a disaster due to inadequate business interruption coverage.
CYBER RISK INSURANCE
As hotels increasingly rely on technology for operations, cyber insurance has become essential. This coverage protects against data breaches, cyberattacks, and the associated costs of managing such incidents. The Canadian Centre for Cyber Security reported that the hospitality industry is among the top five sectors targeted by cybercriminals.
SPECIALIZED COVERAGES
Host Liquor Liability and Special Events
Coverage protects against claims arising from serving alcohol at events. Employment Practices Liability (EPL) insurance is also crucial for hotels, offering coverage for legal expenses and settlements related to employee claims.
EQUIPMENT BREAKDOWN INSURANCE (EBI)
EBI covers the financial loss resulting from the sudden and accidental breakdown of essential equipment, such as HVAC systems, boilers, and elevators, which are critical to hotel operations.
Stefura highlights several key insurance coverages that are vital for the hospitality sector:
Using Data for Risk Prediction & Better Negotiation with Insurers
Canadian hoteliers can leverage data analytics to predict potential risks and negotiate better terms with insurers. Advanced data analytics tools can analyze patterns in weather events, guest behaviour, and operational vulnerabilities, providing hoteliers with predictive insights into potential future risks. For example, by using historical weather data and predictive modelling, a hotel in Alberta could better understand its exposure to hailstorms and negotiate more favourable terms for hail damage coverage. Similarly, analyzing guest data for behaviour that could indicate potential security risks can help hotels assess their cybersecurity needs more accurately and negotiate comprehensive cyber risk insurance policies at competitive rates.
Embracing Innovation & Sustainability in Hospitality Insurance
Trends in hospitality insurance are moving towards greater specialization, innovation, and responsiveness to emerging risks. Hoteliers are increasingly seeking insurance coverage options that support sustainability goals, such as green building insurance and policies that cover energy-efficient upgrades.
Canadian insurers are increasingly incentivizing green building practices by offering discounts and specialized coverage for hotels that invest in sustainable infrastructure. For instance, Intact Insurance offers a Green Building Rebuild endorsement, which allows policyholders to rebuild with environmentally friendly materials and technologies after a loss. Hotels that achieve LEED certification or meet other sustainability criteria can receive premium reductions of up to 10 per cent. One example is Delta Hotels by Marriott Toronto, which has approached its aggressive sustainability goals through insurance incentives to invest in energy-efficient systems and sustainable practices, reducing both operational costs and insurance premiums.
Collaborating with Local Governments & Industry Associations
Hoteliers can also benefit by collaborating with local governments and industry associations to better understand and mitigate emerging risks. Partnerships with municipal governments can provide access to resources for disaster preparedness and response planning.
• The Hotel Association of Canada (HAC) offers resources and training sessions in collaboration with local governments to help hoteliers prepare for natural disasters, cyber threats, and liability risks at hotelassociation.ca.
• Similarly, in Quebec, hoteliers can collaborate with Tourisme Québec to participate in regional climate adaptation programs, which offer insights and resources to better manage weather-related risks and reduce insurance premiums at bonjourquebec.com
• In 2024 Travel Alberta released emergency management guides in the Industry Hub section of its website at industry.travelalberta.com.
• The British Columbia Hotel Association (BCHA) released its Emergency Management Booking Portal to address the need for rapid and effective evacuation procedures in response to climate crises in British Columbia at bcha.com.
Evolving expectations of guests are influencing the types of insurance coverage that hotels prioritize. Modern guests demand higher safety standards, sustainability practices, and technological conveniences. According to a 2023 J.D. Power North America Hotel Guest Satisfaction Index Study, there is a rising demand for hotels to implement enhanced security measures, such as contactless check-ins and robust cybersecurity protocols. As a result, hoteliers are increasingly prioritizing cyber risk insurance to protect sensitive guest data.
Bureau of Canada. (2023). Facts of the Industry 2023. Aon Risk Solutions. (2023). Global Market Insights Report 2023. Zurich Canada. (2023). The True Cost of Business Interruption. Canadian Centre for Cyber Security. (2023). Cyber Threats to Canada’s Hospitality Sector. Marsh Canada. (2023). Employment Practices Liability: Trends and Insights. FM Global. (2023). Resilience Index 2023. Intergovernmental Panel on Climate Change (IPCC). (2023). Climate Change Report 2023.
Guest demand for eco-friendly accommodations is driving a need for green building insurance and coverage that supports sustainable practices. The shift towards these types of coverages reflects a broader trend in the hospitality industry towards meeting new guest expectations while mitigating emerging risks.
As the Canadian hotel industry navigates the challenges posed by an increasingly volatile climate and evolving technology that also creates cyber vulnerabilities, the role of insurance is intrinsic to successful hotel operations. By leveraging tailored risk management strategies, hoteliers can safeguard their investments and ensure resilience in an uncertain future.
OFFICE TO HOTEL
Calgary office building transformed into Element Hotel by Westin to address vacancy and boost local market
BY STACEY NEWMAN
PBA Group of Companies, along with Concord Hospitality, has begun work to transform a downtown Calgary office building into the Element Hotel by Westin, aiming to address high office vacancy rates and add new accommodation options in the city’s core.
PBA Group of Companies is taking steps to address Calgary’s downtown office vacancy problem with a new project that will convert an underused office building into a hotel. The 12-storey building, previously known as the Canadian Centre at 833 4th Ave SW, is being redeveloped into the Element Hotel by Westin, a 226-suite facility with extended-stay rooms, communal spaces, and various modern amenities. This conversion is part of Calgary’s broader strategy to rejuvenate its downtown, which has been dealing with high office vacancy rates and economic shifts.
James Scott, senior vice president of planning and development at PBA Group, describes the project as a significant step in creating a more mixeduse downtown: “We’re honoured to help take one of the first steps in transforming our downtown into a differentiated residential and recreational district that serves as a symbol of progressive inner-city planning with this conversion.”
Calgary’s office market has faced challenges in recent years due to fluctuating demand and changes in the local economy. The Element Hotel project removes 170,000 square feet of vacant office space from the market, reflecting a growing trend where developers repurpose commercial properties into residential or hospitality uses. This is the first hotel project to be part of Calgary’s
Downtown Development Incentive Program, which aims to reduce office vacancies and drive investment into the core.
The Element Hotel will offer extended-stay units with fully equipped kitchens, spa-inspired bathrooms, and other amenities to attract both business and leisure travellers. The project aims to cater to a diverse mix of visitors and provide more flexible accommodation options downtown.
The hotel is designed with features aimed to set it apart from traditional accommodations. The “Studio Commons” concept will offer a set of four guest rooms grouped around a shared kitchen and living area, allowing groups of travellers to stay together more easily and
Photo renderings of Element by Westin Hotel Suite, PBA Group of Companies.
enjoy communal spaces. Other amenities include an elevated lobby lounge and café, an upscale casual dining restaurant on the top floor, and meeting rooms that cater to business needs. The rooftop restaurant, located just blocks from the Bow River, will feature views of the city and a menu focused on local ingredients.
The hotel’s design is focused on sustainability and aims to appeal to Calgary’s active lifestyle. It will feature a fitness centre equipped with modern exercise equipment, bike borrowing services, and environmentally friendly elements like
low-flow fixtures and electric vehicle charging stations. The project has already diverted 572,000 kilograms of waste from landfills, about 65 per cent of the project’s total waste.
The development comes as Calgary prepares for a rise in tourism. According to Tourism Calgary, the city expects 8.7 million visitors in 2024, bringing in an estimated $3.2 billion in tourism revenue. Comparatively, Calgary saw approximately 7.7 million visitors in 2019. The economic impact of these visitors was about $2 billion, according to Tourism Calgary’s 2019 annual report.
The Element Hotel by Westin will add much-needed capacity to Calgary’s hospitality market and provide options for different types of travellers, especially those looking for longer stays or a more flexible experience.
Calgary’s downtown has struggled with office vacancies for years. According to Colliers and CBRE, as of Q2 2024, Calgary’s downtown office vacancy rate was approximately 24.1 per cent, down from the previous year’s rate of 25.4 per cent. The downtown market has seen some positive absorption and leasing activity, particularly in Class AA office spaces, which has helped reduce the vacancy rate slightly. However, challenges remain due to mergers and consolidations in the energy sector, impacting overall office occupancy in Calgary’s downtown core.
Calgary is looking to redefine its downtown core as a more attractive destination for residents, visitors, and investors.
Repurposing buildings like the Canadian Centre is seen as one way to address the issue. By converting office space into a hotel, the project aims to make downtown more vibrant and appealing, not just for visitors but also for residents and businesses.
The Element Hotel will be located on the west side of Calgary’s downtown core, an area that city planners have identified as a potential growth spot. The location provides convenient access to transit, major roadways, and walking and biking paths along the Bow River. Nearby amenities, including the West Eau Claire Park, the 8th Street urban improvement corridor, and views of the Louise Bridge and Kensington Village, make the site well-suited for a hotel that serves both tourists and business travellers.
PBA’s decision to redevelop this site follows its recent success with The Dorian, a dual-brand Marriott hotel that opened in Calgary in 2021. The Dorian, a $110 million project, was well-received for its design and quality, setting a precedent for PBA’s entry into the hospitality market. The Element Hotel will be the company’s second hotel development and is part of its broader strategy to diversify its portfolio and contribute to the local economy.
The conversion of the Canadian Centre into the Element Hotel by Westin is currently in the construction phase, with completion expected in the summer of 2025. As Calgary’s downtown continues to evolve, projects like this one are being closely watched as potential models for revitalization efforts in other North American cities facing similar economic challenges.
By repurposing existing buildings and investing in sustainable development, Calgary is looking to redefine its downtown core as a more attractive destination for residents, visitors, and investors. The success of the Element Hotel by Westin will be an important test of how effectively office-to-hotel conversions can contribute to these goals.
THE CHALLENGES OF CONVERTING COMMERCIAL REAL ESTATE PROPERTIES INTO RESIDENTIAL
BY STACEY NEWMAN
To address Canada’s ongoing housing crisis, the notion of converting commercial real estate properties into residential often emerges as a potential solution. The reality is that rezoning from commercial to residential use is a complex process involving municipal approvals and public consultations.
In this article, STAY Magazine explores the primary reasons why such conversions are not as simple as they might appear, with acknowledgements to Brian Flood, EVP and practice leader of hospitality and gaming at Cushman & Wakefield for his insights and assistance.
ZONING AND REGULATORY HURDLES
One of the most significant obstacles is zoning. Commercial properties are often located in areas zoned for business activities, not residential living. Changing the zoning designation of a property requires navigating through complex municipal regulations and often involves lengthy public consultations and hearings. According to the Canada Mortgage and Housing Corporation (CMHC), “Zoning by-laws regulate the use, size, height, density, and location of buildings on properties.”
Another major challenge occurs when the municipal infrastructure is not in place for residential such as city services, schools and parks etc.
Residential buildings must comply with a different set of building codes than commercial properties. These include requirements for fire safety, ventilation, insulation, and other health and safety standards that may necessitate substantial modifications to the structure. The Government of Canada notes that “The National Building Code of Canada sets out technical provisions for the design and construction of new buildings.”
STRUCTURAL AND DESIGN CONSTRAINTS
Commercial buildings are typically designed with different purposes in mind. Office buildings, for example, have open floor plans and large spaces that do not easily convert into the smaller, segmented spaces required for residential units. Retrofitting these spaces to include kitchens, bathrooms, and other essential amenities can be expensive and complex.
Residential buildings require a different configuration of plumbing and electrical systems. Commercial buildings may not have the infrastructure to support the needs of multiple residential units, necessitating extensive rewiring, new plumbing, and potentially even structural reinforcement to support these changes.
ECONOMIC CONSIDERATIONS
The costs associated with converting a commercial property to residential use can be substantial. This includes not only the physical renovation costs but also potential legal fees, the expense of navigating regulatory requirements, and the cost of potentially prolonged vacancy during the conversion process. The financial burden often outweighs the potential returns on investment, making such projects economically unfeasible. As highlighted in RBC’s Building Blocks: Addressing Canada’s Housing Crisis with Innovation and Prefabricated Construction report: While there is growing
EXAMPLES OF CONVERSIONS:
Canada has seen numerous conversions of commercial properties into residential spaces, including hotels. Following are some notable examples.
interest in repurposing commercial spaces, the financial challenges remain a significant barrier. The cost of conversion often exceeds the economic benefits, particularly in areas with low residential demand.
The location of many commercial properties may not align with residential demand. For instance, office buildings in central business districts may not attract families looking for homes with access to schools, parks, and other residential amenities. This mismatch can affect the desirability and, consequently, the financial success of such conversions.
ENVIRONMENTAL AND COMMUNITY IMPACT
Older commercial buildings may contain hazardous materials such as asbestos or lead paint, which pose environmental and health risks during renovation. Properly managing these materials adds another layer of complexity and cost.
Local communities may resist the conversion of commercial spaces into residential units. Concerns about increased traffic, changes in neighbourhood character, and the strain on local infrastructure and services can lead to opposition, complicating and delaying projects.
LEGAL AND INSURANCE ISSUES
Liability and Insurance: Converting a commercial property to residential use can raise new liability and insurance issues. Residential properties have different insurance requirements, and the transition can complicate matters, particularly if there are structural changes involved that might impact the building’s safety and integrity.
Tenant Rights and Leasing Laws: The legal landscape governing residential properties is markedly different from that of commercial properties. Ensuring compliance with residential tenancy laws, including issues like rent control and tenant protections.
While the conversion of commercial properties into residential units offers a potential avenue for addressing housing shortages, the myriad of challenges involved make it a far from straightforward solution. From regulatory and structural hurdles to economic and environmental considerations, the process is fraught with difficulties that must be carefully navigated. For stakeholders in the hotel and broader commercial real estate industry, understanding these challenges is crucial for assessing the feasibility and potential success of such ventures.
CALGARY CONVERSIONS:
Calgary has been at the forefront of office-toresidential conversions, driven by its downtown revitalization efforts, including:
• Dominion Centre: This project by Alston Properties and Slate Asset Management will convert nearly 100,000 square feet of office space into 132 homes, with a quarter of the units offered at affordable rates.
• Palliser One: Aspen Properties’ project will more than double its housing capacity, adding 395 homes to downtown Calgary. Palliser One is a 27-storey, Class B office building located on 9th Avenue SW at 1st Street SE, at the foot of the Calgary Tower.
• Hotel Conversion at 833 4 Avenue S.W.: Originally planned as an office-to-residential conversion, this project has been revised to convert the building into a long-stay Element Hotel by Westin with 226 suites (Construct Connect) (LiveWire Calgary)
TORONTO CONVERSIONS: As of 2024, several historic buildings in Toronto are being converted into mixed-use residential and hotel developments that preserve heritage elements while incorporating modern amenities and affordable housing options.
• The Waterworks Building: This historic building in Toronto’s King West neighbourhood was converted from a former utility building into a mixeduse development, including residential units. Waterworks is a hybrid, mixed-use space that rehabilitates, conserves, and expands an industrial heritage site through the integration of diverse programs – not only supporting the life of its residents, but the greater community and urban experience. The design combines food-focused retail, a fully serviced YMCA with extensive social facilities dedicated to health and wellness, a mid-rise condominium with family-oriented dwellings, including affordable housing, and an existing youth shelter. The combination of these diverse programmatic elements breaks down socioeconomic barriers, catalyzing and activating the St. Andrew’s Playground neighbourhood, according to architects Diamond Schmitt. Waterworks received the 2024 CHBA National Award for Housing Excellence.
• Palace Arms Hotel: One of Toronto’s oldest landmarks is being redeveloped into a mixed-use residential development. The redevelopment plans include a 14-storey tower with 219 rental units, including a mix of one-, two-, and three-bedroom suites, as well as live/work suites and affordable studio units. The developers intend to conserve the building’s original heritage elements, such as the brick masonry, window openings, and roof lines, maintaining the architectural integrity of the structure. The project also features modern amenities like a fitness facility, co-working space, social room, yoga studio, and a rooftop patio
• The Bond Place Hotel: According to ConstructConnect, the City of Toronto purchased the Bond Hotel property, located at 65 Dundas St. E.in September 2022. The existing building is being renovated and will include homes for a range of incomes, including some deeply affordable homes with supports and studio and one-bedroom apartments with a private bathroom and kitchenette. At least 15 per cent of the apartments will be accessible, with washrooms that have a roll-in shower, vanity, toilet area and grab bars and barrier-free paths throughout the suite.
MONTREAL CONVERSIONS: Montreal has also seen significant conversions, particularly in the hotel sector:
• Former Delta Centre-Ville Hotel Conversion: In 2013, this project transformed the former 711-room, 33-story Delta Centre-Ville Hotel in downtown Montréal into the Evo Student Residence, an upscale student housing tower.
• Former Hotel de La Montagne: Located near downtown Montreal, the hotel has been repurposed as part of a mixed-use development that includes residential apartments, a hotel, retail spaces, and other amenities. The development, built on the former site of the Hotel de La Montagne, features the Four Seasons Hotel Montreal, which includes 166 hotel rooms, a restaurant, a bar, a spa, and 18 luxury residences. This mixed-use complex is located at the corner of Rue De La Montagne and
Rue Sainte-Catherine Ouest, next to the expanded Ogilvy Store in downtown Montreal. The development also includes a highrise condominium, and additional retail and office spaces, is serviced by seven levels of underground parking. It represents a collaboration between Holt Renfrew, Whittington Properties, and CarbonLeo, forming a significant redevelopment project in downtown Montreal
• Former Manoir LaFontaine: The former Manoir Lafontaine, located in the Plateau-Mont-Royal area of Montreal, has been transformed into affordable housing units. This project was led by the non-profit organization Interloge, which specializes in acquiring and converting buildings into social housing to keep rents below market rates. The building, which consists of 93 units, is located across from Lafontaine Park. The project is supported by a collaboration of various partners, including funding from the Quebec government, Desjardins, and the City of Montreal. The Quebec government contributed $16.8 million, while Desjardins provided $13.5 million in financing and $1.9 million in patient capital. Additionally, the City of Montreal’s executive committee granted $5.6 million for the project. The initiative is also part of the Chantier Montréal Abordable pilot projects, which aim to increase affordable housing availability in Montreal through partnerships and community engagement.
VANCOUVER PROJECTS: Vancouver and its surrounding areas contain many hotel-to-supportive-housing conversions, including:
• Ramada Inn Hotel at 435 West Pender St: The province, through BC Housing, purchased the 80-room Ramada Inn Hotel at 435 West Pender in 2021 as part of a long-term plan to provide safe homes with supports as BC Housing and the City of Vancouver take collective action to address the critical needs of people experiencing homelessness in Vancouver. The Government of Canada is providing funding for this project through the Rapid Housing Initiative (RHI), an initiative of the National Housing Strategy.
• Buchan Hotel, 1906 Haro St: The province, through BC Housing, purchased the 63-room Buchan Hotel at 1906 Haro St. in 2020 to provide housing with supports for women in need.
• Howard Johnson Hotel, 1176 Granville St: The province, through BC Housing, purchased the 110-room Howard Johnson Hotel in 2020. The building has since been transformed into the “Lugaat” supportive housing facility, offering temporary accommodations with access to support services for individuals experiencing homelessness or at risk of homelessness. The long-term plan involves developing a mix of affordable homes on the site
SOURCES:
• Canada Mortgage and Housing Corporation. (2023). “Zoning by-laws and your property.”
• Government of Canada. (2023). “National Building Code of Canada.”
• Royal Bank of Canada. (2023). “Real Estate Market Outlook.”
• STR. (2023). “Canadian Hotel Occupancy Rates.”
• Vancouver City Council. (2023). “Supportive Housing Initiatives.”
What are the financial advantages of converting hotels to residential?
In a 2022 report by Cushman & Wakefield titled The Case for Hotel-to-Residential Conversions, analysts highlight that converting underperforming or distressed hotels into residential properties can be a strategic pivot for investors and developers. This strategy allows them to capitalize on strong residential demand while repurposing existing real estate assets.
Following are some key financial advantages according to Cushman & Wakefield, Colliers International, Canada Mortgage and Housing Corporation, Deloitte Canada, and the City of Toronto.
COST EFFICIENCY COMPARED TO NEW CONSTRUCTION
Lower Conversion Costs: Converting an existing hotel into residential units is often more cost-effective than new construction. This is because the basic structure and infrastructure, such as plumbing, electrical, and HVAC systems, are already in place. For example, a 2022 report from Colliers International highlights that conversion costs can be significantly lower than building new residential units, with potential savings of up to 30 to 40 per cent depending on the condition of the hotel and location.
Faster Turnaround Time: The process of converting an existing hotel into residential property is generally faster than new construction. This quicker turnaround can lead to earlier returns on investment, which is crucial for developers and investors seeking to capitalize on rising housing demand.
INCREASED DEMAND FOR HOUSING
Urban Housing Demand: Many Canadian cities, such as Toronto and Vancouver, face severe housing shortages and high demand for rental and condominium units. The Canada Mortgage and Housing Corporation (CMHC) reports that urban centres continue to experience low rental vacancy rates and rising rents, making converted residential properties financially attractive. The national vacancy rate for Canada’s primary rental market reached a new low of 1.5 per cent in 2023, the lowest recorded rate since 1988.
Favourable Market Conditions: With the hospitality sector affected by the COVID-19 pandemic, many hotels experienced prolonged vacancies and decreased revenues. This has created opportunities for developers to acquire underutilized hotels and repurpose them for residential use, addressing the housing demand while leveraging lower acquisition costs.
ZONING AND INCENTIVES
Flexible Zoning Regulations: Some municipalities in Canada have introduced more flexible zoning regulations to encourage hotel-to-residential conversions. For example, the City of Vancouver has implemented policies that support the repurposing of existing buildings to create more affordable housing options. These policies can reduce the regulatory burden and associated costs for developers.
Government Incentives: In some cases, governments provide incentives for conversions to address housing shortages. For example, the City of Toronto has considered financial incentives and reduced fees for developers undertaking conversions to create affordable housing, as part of its HousingTO 20202030 Action Plan
POTENTIAL FOR HIGHER REVENUE AND STABLE CASH FLOW
Rental Income Potential: In high-demand urban areas, converted residential units can yield higher and more stable rental income compared to hotel revenues, particularly in markets where tourism has been slow to recover postpandemic. A 2023 report from Deloitte Canada highlighted that the potential for consistent rental income makes residential properties a more stable investment compared to hospitality assets.
Diversification of Real Estate Portfolio: For real estate investors, converting hotels to residential properties can provide a diversified asset portfolio that includes both short-term (rental income) and long-term (property value appreciation) financial gains.
CANADA NEEDS TO OVERHAUL THE TEMPORARY FOREIGN WORKER PROGRAM, NOT JUST TINKER WITH IT
BY JANE STINSON
Adjunct Research Professor in Work and Labour, Carleton University
The federal government recently announced important changes to the Temporary Foreign Worker program, a program that allows Canadian employers to hire foreign nationals to fill labour shortages at low wages.
As of Sept. 26, 2024, the federal government will stop processing employer requests for temporary foreign workers in cities with an unemployment rate of six per cent or higher, with limited exceptions.
The government will also limit employers’ hiring of temporary foreign workers to no more than 10 per cent of their total workforce, a limit that was in place before the COVID-19 pandemic. The maximum duration of employment for workers hired through the low-wage stream will be reduced to one year from two years.
Unfortunately, these changes still fall far short of the reforms needed to address the program’s deeper issues. A United Nations special rapporteur has described the program as a “breeding ground for contemporary forms of slavery,” highlighting the urgent need for far more comprehensive reforms.
RISE IN TEMPORARY FOREIGN WORKERS
The Temporary Foreign Worker Program was established to provide a temporary solution to labour shortages, allowing employers to hire foreign workers on a temporary basis when Canadian workers can’t be found.
The program was originally intended as a shortterm solution, meant to supplement the domestic workforce rather than replace it. In recent years, however, an increasing number of employers have been hiring temporary foreign workers to fill vacant jobs in their organizations, even as unemployment rises in Canada.
This significant increase suggests that employers are increasingly depending on foreign labour to fill positions that, in the past, might have been filled by Canadian workers.
The rise in temporary foreign workers is particularly pronounced in certain sectors, and there has been a significant rise in the number of positions that have been approved for temporary foreign workers.
Between 2018 and 2023, the number of temporary foreign workers more than doubled according to data from Employment and Social Development Canada, increasing from 108,988 in 2018 to just under 240,000 in 2023.
For instance, the number of approvals for food counter attendants, kitchen helpers and related occupations rose by 4,802 per cent between 2018 and 2023. Similarly, approvals for administrative assistants rose by 1,063 per cent, while light-duty cleaners saw a 1,414 per cent increase.
THE NUMBER OF POSITIONS APPROVED TO BE FILLED BY TFWS ACROSS CANADA SINCE 2016.
239,646 133,196 130,457
98,146 222,847 125,279 108,988
These changes are expected to affect the retail, accommodation and food service sectors the most.
AN EXPLOITIVE SYSTEM
Nothing is being done to change the exploitive system that gives employers steady access to low-wage, vulnerable migrant workers with precarious work and immigration status.
Temporary foreign workers in this program are tied to their employers through closed work permits that only allow them to work for the employer who applied to bring them to Canada for the length of time specified. Typically, they must leave Canada when their temporary job ends. Quitting or finding another job is not an option, forcing workers to stay in jobs that are often exploitative.
The Standing Senate Committee on Social Affairs, Science and Technology released a report in May recommending that Immigration, Refugees and Citizenship Canada stop issuing these closed work permits.
These employment terms create conditions for wage theft, excessive work hours, limited breaks and physical abuse. These issues were highlighted in a final report from the UN’s special rapporteur on contemporary forms of slavery, Tomoya Obokata.
Source: Employment and Social Development Canada
The special rapporteur also called attention to little information provided to these workers on their rights and the lack of enforcement measures to deal with exploitative employers or labour brokers who charge workers exorbitant fees to arrange their paperwork and jobs in Canada, often leaving workers in debt.
It’s clear temporary foreign workers are not a short-term solution for perceived labour shortages, but are instead an entrenched element of Canada’s changing workforce. These workers remain in precarious temporary work even after years of living and working in Canada without ever getting any closer to achieving permanent residency, not to mention Canadian citizenship.
GOOD ENOUGH TO WORK, GOOD ENOUGH TO STAY
There should be permanent residency and a path to citizenship for all workers entering Canada. As the United Food and Commercial Workers Union has put it, if a person is “good enough to work” in Canada, then they are certainly “good enough to stay.”
residency remain the only real solutions to the exploitive working conditions and employment system for temporary foreign workers.
The Canadian Labour Congress has been a vocal advocate for reform, calling on the government to take concrete steps to improve protections for workers in the low-wage Temporary Foreign Worker program. These steps include:
• Replacing the employer-specific work permits with open work permits;
• Providing permanent residency opportunities for low-wage workers; and
• Provide permanent residency opportunities for former low-wage workers who are undocumented.
By creating pathways to permanent residency and citizenship, Canada can ensure these workers, who contribute so much to the economy, are treated with more dignity and respect.
Rather than tinkering around the edges, the federal government needs to fundamentally overhaul the Temporary Foreign Worker program to end the exploitation of these workers.
However, few temporary foreign workers, especially in the low-wage stream, become permanent Canadian citizens. Union membership and permanent This article was previously published in The Conversation.
FAIRMAS & TIDAN
A SUCCESS STORY
Reshaping Tidan Hotel’s financial planning and analysis
The Tidan Hospitality and Real Estate Group has been a leader in the real estate industry since 1970. Despite their success, managing financial planning for their 12 hotels was a challenge. Tidan’s reliance on manual processes for consolidating financial data led to inefficiencies and errors.
In this article, Christine Larocque, director of accounting for Tidan’s Hospitality Division, shares insights on how Tidan transformed their financial operations with FairPlanner by Fairmas, a financial planning and analysis (FP&A) software tailored for the hospitality industry.
CHALLENGES BEFORE FAIRMAS
Larocque shared that before adopting FairPlanner, Tidan struggled with financial planning and management due to the absence of an effective tool. The entire budgeting process was manual, relying on Excel spreadsheets, which were timeconsuming and prone to errors. Forecasting was rarely done due to the rigidity of their existing ERP system, and limited reporting capabilities. Consolidating financial data from various sources was also challenging. Without integration, it was difficult to analyze historical data or track financial performance effectively, leading to delays and inaccuracies in decision-making.
CHOOSING FAIRMAS
She added that Tidan evaluated multiple financial planning solutions and chose FairPlanner by Fairmas for its hospitalityspecific features, ease of use, quick implementation, and reasonable pricing. The Fairmas team’s proactive approach and understanding of Tidan’s needs influenced their decision.
IMPLEMENTATION AND KEY FEATURES
The implementation process was smooth and efficient. The user-friendly interface allowed for a quick onboarding process with minimal training required. Key features like the ability to compare actuals with budgets seamlessly stood out, making the software a valuable addition to Tidan’s financial operations.
BETTER-INFORMED FINANCIAL DECISIONS
Before Fairmas, making financial decisions on loans was challenging due to a lack of comprehensive data. With FairPlanner, Tidan developed a 12-month rolling schedule for banks, reducing errors from manual entry and enabling better-informed decisions.
TIME SAVINGS AND IMPROVED COLLABORATION
Implementing FairPlanner has led to significant time savings and improved team collaboration. Quarterly meetings are now more efficient, and department heads have easy access to the financial data they need. This transparency fosters better communication, leading to more cohesive decision-making processes. The benefits of time savings, enhanced accuracy, and better-informed decision-making continue to drive Tidan’s success.
RECOMMENDATION
implementing
IMPROVEMENTS AFTER IMPLEMENTING FAIRMAS
Since implementing FairPlanner, Tidan has seen significant improvements in its financial processes. The budgeting process, once slow and error-prone, is more efficient. Forecasting, which was almost non-existent, is now a regular part of their financial planning. Tidan can easily switch between historical data and generate comparisons, enhancing its quarterly financial analysis. This streamlined process has saved considerable time and allowed the team to focus on strategic tasks, improving overall efficiency.
Larocque highly recommends Fairmas, especially for hotel properties. She said, “One of the most impressive aspects of the Fairmas team is their unwavering commitment to every customer, whether you’re new or long-standing. They consistently provide meticulous care and attention, ensuring that support is always readily available, no matter where you are on your customer journey. Their software is easy to use, fast, and allows for instant comparisons of data. Comparing financial data from 2019 to today, a pre-COVID year, is now just a click away. The Fairmas solution has significantly improved our financial planning and analysis processes, making it an invaluable tool for our ongoing success.”
SLEEP TOURISM IS AN IDENTIFIABLE GROWTH SECTOR, ARE HOTELIERS PAYING ATTENTION?
BY ALLAN LYNCH
A good night’s sleep has progressed far beyond Goldilocks’ “too soft,” “too hard,” and “just right” research. It’s such a real quest that sleep tourism has evolved as an identifiable growth sector driven by the raised awareness of and desire for better health and wellness. A study by HTF Market Intelligence suggests sleep tourism will increase by USD 409.8 billion at a CAGR of 7.9 per cent from 2023 to 2028. Currently, the market value is pegged at USD 640.9 billion.
Researchers say the market drivers are a growing prevalence of sleep disorders and related health problems, as well as an increase in disposable income and travel expenditures. It is also on-trend for the increasing demand for sustainable and responsible tourism.
Just as Goldilocks struggled to finally get a good night’s sleep, travel operators and consumer manufacturers are recognizing the challenge of sleep-deprived populations. Not surprisingly there is an industry organization, the Better Sleep Council (BSC), which since 1996 has studied sleep patterns, public attitudes towards sleep and health, and mattress buying decisions. Understanding those individual buying decisions might help win or be a determining factor in accommodation choice.
The latest research from the BSC says 48 per cent of US adults say they either do not get enough sleep or are dissatisfied with the quality of their sleep. Only 17 per cent of adults say they get eight hours of sleep a night. As many as 53 per cent of adults say they get less than six hours of sleep per night. Of those, 54 per cent of women and 42 per cent of men identify as troubled sleepers.
Age can be a factor in how well adults sleep. Sixty per cent of the sleep-deprived complain that physical discomfort (body pain and room temperature – too hot or too cold) interferes with their sleep. Interestingly, while both Boomers and Gen Xers mention body pain as an impediment to better sleep, BSC found that “worrying about money is the most common impediment among Gen Z and Millennials.”
Outside noise and insufficient darkness (18 and 11 per cent) are the other leading impediments to sleep. Only a third of US adults wake up feeling refreshed and well-rested.
Some people do take measures to get a better night’s sleep, like adjusting their technology/media use (41 per cent), adhering to a sleep routine (40 per cent) and/or exercising (33 per cent).
Over the decades the hospitality industry has skirted on the edges of sleep tourism. But those actions were presented more as a one-off amenity, like the installation and promotion of blackout curtains, white noise machines and pillow menus to promote comfort, rather than pulled together into a bundle targeted to a better sleep experience.
Having identified the issue and giving a name to the market segment has provided direction to spur more properties and chains to create sleep circuits, sleep concierges or sleep packages. Packages usually marshal existing in-house, do-it-yourself amenities together as a suggestion for better sleep: like use of the spa, some level of exercise (whether in the fitness centre or suggested in-room stretching and yoga workout), a pre-bed bath, herbal teas and mocktails. Some properties have invested in weighted blankets, scented pillow mists, sleep-inducing meditation recordings, and melatonin-infused patches or offer a pillow menu catering to guests who may prefer sleeping on their back or side. Sleep circuits and concierges tend to involve a higher level of personal involvement in achieving guest relaxation.
Properties like Six Senses Resorts and Rocco Forte Hotels have seen the opportunity to offer multi-night packages to help guests achieve a better sleep routine sort of like recovering from jetlag.
These so-called “healthy sleep strategies” aim to supply guests with the tools they need to improve their sleep both on the road and at home.
A lot of what has been done in the past has either been championed by boutique operations in exotic destinations or as a response to a particular concept du jour. Now, major brands are embracing the idea. Westin Hotels & Resorts is the most recent to announce a brand-wide change with a new version of their signature “Heavenly Bed” to target this market.
Westin says their Next Generation Heavenly Bed “fortifies the brand’s mission and 360-degree wellness approach, empowering discerning travellers to not only maintain but enhance their well-being while travelling.” In making the announcement Brian Povinelli, senior vice president at Marriott International said, “In a culture that has long glorified business and
productivity, Westin knows that a good night’s sleep is paramount to guests’ overall well-being, which is why our iconic Heavenly Bed has resonated with travellers for decades.”
The Next Generation Heavenly Bed addresses the discomfort issues identified by the BSC. It employs high-tech fibres, motion-control technology and temperature-regulating gel-infused memory foam. The mattress finishes have a lower environmental impact and longer life span. A hydrocool hypoallergenic duvet insert will also contribute to improved temperature regulation and a better night’s sleep.
The Next Gen bed also relied on guest input to go forward with removing the bed skirt and bolster pillow to reflect a more modern sleep experience.
The Next Generation Heavenly Bed remains a mainstay of Westin’s guest comfort focus it, and part of its Six Pillars of Well-Being: Sleep Well, Eat Well, Move Well, Feel Well, Work Well, and Play Well.
In essence, sleep tourism is an opportunity for properties to reframe their messaging to reintroduce themselves to a new market segment as well as remind existing clients of your innovation and hospitality. It’s like hospitality 2.0.
MSI: ELEVATING HOSPITALITY DESIGN WITH PREMIUM PRODUCTS
Since 1975, MSI has grown into a leading supplier of premium flooring, countertop, wall tile, and hardscaping products across North America. With a vast assortment of products including quartz, luxury vinyl tile (LVT), porcelain, and natural stone, MSI is a trusted partner for the hospitality sector, known for delivering quality, innovation, and style.
VENTILATED FACADES: THE FUTURE OF HOTEL EXTERIORS
In the ever-evolving world of hotel architecture and design, ventilated facades are a game-changer. These systems not only enhance the aesthetic appeal of hotel buildings but also provide functional benefits that contribute to operational efficiency and guest comfort. MSI’s High-Performance Porcelain Panels are at the forefront of this trend, offering durability, versatility, and an array of design options.
Benefits of Ventilated Facades include Thermal Efficiency, Moisture Control, Building Protection, Acoustic Insulation, Fire Safety, Sustainable Building Practices, Low Maintenance, Improved Indoor Air Quality, and Long-Term Cost Savings.
MSI’s Stile Large Format Porcelain (LFP) is particularly wellsuited for ventilated facades, offering customization options such as digital printing, custom thicknesses, and mesh mounting for enhanced safety. These panels not only ensure durability but also maintain their aesthetic appeal over time.
INTERIOR EXCELLENCE:
FLOORING AND WALL SOLUTIONS
A hotel’s interior design plays a crucial role in shaping guest perceptions, and MSI offers a range of products that can transform any space into a luxurious retreat.
Everlife Porcelain Tile: Known for its superior hardness, low porosity, and resistance to wear, MSI’s porcelain tiles are ideal for high-traffic areas like hotel lobbies. Available in a wide variety of designs, from wood-look to stone-inspired aesthetics.
MSI’s Antoni Gris and Praia Carrara Tiles offer the beauty of natural surfaces without the wear and maintenance.
Everlife Luxury Vinyl Flooring: Luxury vinyl planks (LVP) offer the perfect blend of beauty, durability, and practicality. These realistic wood and marble flooring looks use advanced technology that ensures resistance to wear, moisture, and heavy traffic.
Prescott Katella Ash LVP flooring features DryLuxe waterproof technology and CrystaLux Ultra protection, designed to withstand the busiest hotel environments, ensuring vibrant, long-lasting floors that impress guests.
In a league of its own, MSI’s Malton Smithcliffs Hybrid Rigid Core is ultra-durable, standing up to daily wear and tear.
OUTDOOR SPACES: PAVERS AND TILES FOR A LUXURIOUS EXPERIENCE
MSI’s Arterra Premium Porcelain Pavers and Traktion Collection tiles are perfect for outdoor areas like pool decks, patios, and lounge spaces. These high-quality porcelain products are designed to withstand extreme weather and heavy foot traffic.
BATHROOM RENOVATIONS: A COMPREHENSIVE APPROACH
MSI is a one-stop source for hotel bathroom renovations, offering a wide range of products, including vanity tops, shower surrounds, and flooring. Glacier Pearl Porcelain Panels, with their luxurious marble-like appearance and durability, are perfect for creating elegant, long-lasting shower or bath spaces. In addition to surfaces, MSI provides shower doors, pans, tubs, and vanity bases.
MSI’S COMMITMENT TO HOSPITALITY EXCELLENCE
MSI’s commitment to quality, innovation, and customer satisfaction has made it a trusted partner for some of the world’s leading hotel brands, including Best Western, Choice Hotels, Hilton, Marriott, Red Roof, Sonesta, and Wyndham. MSI offers the products and expertise to elevate any hospitality project. Whether you’re upgrading a boutique hotel or a grand resort, MSI has the tools to help you create spaces that leave a lasting impression on your guests.
Mississauga, ON L5N 6H6 sirtaj.randhawa@msisurfaces.com
http://hospitality.msisurfaces.com
P: (905) 812-6100
ENHANCING HOTEL PROFITABILITY
BY TIMOTHY (TIM) WIERSMA, PRESIDENT AND CEO, REVENUE GENERATION
Leveraging AI and business intelligence for commercial decision support in 2025 and beyond
Hoteliers who harness the potential of AI and BI to shape effective strategies will be the ones who succeed in the years ahead. With margins increasingly tightening, simply following market pricing and trends risks falling into the trap of trying to recover profitability in the wrong areas.
Recently I was engaged with an independent hotel located in a major urban market in eastern Canada. This hotel is relatively new and boasts spacious rooms and suites with a small meeting space platform, and food and beverage. Service levels are excellent, and their reputation is growing as they ramp up their presence in the city.
When we first came on board to assist with the overall revenue optimization strategy, we noticed that the data they were using was often incomplete, the RM system was not fully optimized, and they were basing their strategy on a partial picture from one or two vendors that gave biased data to support the idea of using more of their channels. More often than not they based their decisions on feelings rather than utilizing analytics to guide their decisions. Or they are making broad decisions based on partial data perspectives. The various departments inside the hotel were very siloed in their approach and did not fully understand the goal of the enterprise. This was in part because they didn’t have the tools or resources available to gain the situational awareness needed to prescribe the variables of demand and implement decisions based on the goal of capturing the more profitable side of the demand picture. This was also a situation where the goals inside the organization were not aligned and sometimes in conflict with each other.
As a result, this hotel was not profitable and was not meeting proforma expectations. Furthermore, management was finding themselves explaining why they were seeing negative profit margins in a market that was growing at a steady pace.
ESTABLISHING A ROBUST BUSINESS INTELLIGENCE FOUNDATION TO ENABLE A DEEPER EXPLORATION OF THE PROFITABLE ASPECTS OF DEMAND
When we engage with a new customer, we begin by ensuring that we have a solid business intelligence (BI) platform which then becomes the foundation for understanding situational awareness and considers not only top line measures but also profitability components. This requires obtaining data from several sources such as including PMS, RMS, sales and catering, external sources such as STR, rate intelligence, and external demand measures. We then study key expense components from distribution channels, marketing efforts, and P&L KPIs that have direct impacts on profitability. Once built and implemented, we can accomplish the following:
Focused KPIs at your fingertips.
• Reduce complexity.
• Improve data access.
• Increase data quality.
• Offer dynamic, intuitive, interactive visuals.
• Provide instant insights that drive value.
• Engage users at all levels of your organization.
Furthermore, by leveraging BI, revenue managers and operations will be able to optimize pricing, enhance guest experiences, increase operational efficiency, and ultimately drive higher revenues and profitability.
DRIVE DECISION-MAKING WITH SCIENCE, NOT EMOTION
Data science plays a critical role in revenue and profit optimization decisions by leveraging advanced analytics, machine learning, and holistic data to optimize pricing, inventory management, and distribution strategies.
It’s important to ensure that your executive teams are not basing their decisions on emotions. When you hear phrases such as “I feel if we did this….” or “let’s cut rates because ….” it would be good to pause and ask the following questions:
• What is the basis for this decision?
• What supporting data suggests a move in this direction?
• How will these decisions contribute to overall profitability?
• What is the desired outcome?
When applying data science approaches, you can better understand demand on any given day or time period. Predictive analytics will be the basis for this forecast, which takes out guessing and allows revenue teams to be proactive in building the base of business. Furthermore, data science will let you know the types of demand over any given time period, allowing you to target the most profitable demand.
DEPENDING ONLY ON AUTOMATED RMS SYSTEMS CAN LIMIT YOUR PROFITABILITY POTENTIAL
Automated hotel RMS systems can provide good short-term demand forecasts but tend to get lost in the longer-term trends. Also, RMSs only consider topline aspects and oftentimes do not understand the types of demand or the costs of acquisition components such as distribution, marketing, and commissions.
I have yet to find an RMS that takes a holistic profitability perspective when applying decision making. This is where a robust business analytics platform becomes the basis for setting up your RMS to align with the overall objectives.
Additionally, most RMS systems do not consider contributions outside of room revenue. This leaves the revenue teams to
decide how best to manage items such as event space and outlets. If left out, these areas may be under-utilized or may not be fully optimized for profitability.
Recently, we started focusing on commercial decision support for event space. This allows hotel teams to better understand demand measures such as the likelihood of a particular space to book hurdles, and minimum spend requirements and informs sales and marketing teams on promotional strategies as well as realistic targets that align with the overall enterprise strategy.
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STOP LOOKING AT STR INDICES AS YOUR PRIMARY INDICATOR OF SUCCESS
Too often I find hoteliers looking at STR indexes to gauge success and build future strategy. This limits your ability to drive profitability. Not all RevPAR gain equals advances in profitability.
I teach a revenue essentials class about every 8 weeks, and one of my favourite exercises is to show two different scenarios of room profit. One is built on the philosophy of emphasizing growing revenues through gains in occupancy, which often comes at the expense of rate. The other assumes a strategy of building rate through emphasis on retail pricing and shifts
THE BOTTOM LINE
As we near the normalization point in overall occupancy in 2025, we cannot rely on any major occupancy gains moving forward but rate still remains strong in most markets. This translates into overall gains in RevPAR in 2025. How we build our strategy moving forward will determine if we are successful in flowing as much of that gain to the bottom line.
Optimizing hotel profitability in 2025 and beyond requires leveraging AI and business intelligence for effective commercial decision support. A robust business intelligence platform that incorporates data from various sources forms the foundation for understanding situational awareness and profitability components. This approach enables focused KPIs, improved data quality, and instant insights. Data science plays a critical role in revenue optimization by utilizing advanced analytics
ABOUT THE AUTHOR
With more than three decades of experience in the hospitality industry, Tim Wiersma is recognized as a leader in revenue management and commercial strategy specializing in property and portfolio revenue management, sales, marketing, distressed-asset turnaround, and asset assessment.
In more recent years Wiersma’s business has grown significantly in the area of building commercial analytics platforms where he and his associates apply data science to enhance profitability for hotels, resorts and event spaces.
Before founding Revenue Generation, Wiersma was a vice president with Host Hotels and Resorts. He has also held VP
in the mix of business, sometimes at the expense of occupancy. Even with an occupancy loss, often a strategy of optimizing mix and rate wins the day from a profitability standpoint. This second approach may mean a lower RevPAR index growth.
Strategies that optimize business mix and pricing, even at the expense of occupancy, often lead to greater profitability.
STR indices are only part of the KPI tool kit, and each hotel should determine which combination of indices is the most profitable given their circumstances.
and machine learning to guide pricing and inventory strategies. While automated RMS systems are useful for short-term forecasts, they often lack a holistic profitability perspective. Hoteliers are cautioned against relying solely on STR indices as success indicators as strategies that prioritize business mix and pricing optimization can lead to greater profitability, even at the expense of occupancy. The key is to base decisions on data-driven insights rather than emotion, considering all aspects of revenue generation and cost management to maximize overall profitability.
BY THE WAY…
That hotel I talked about earlier is now on a good path and has a positive future as a result of a shift in mindset, and dedication to taking a holistic view of their situation, goals are becoming more aligned, and profitability is on the rise.
positions at TPG Hospitality, a private equity firm with over 60 full-service hotels representing all major markets and brands, and he was vice president of Red Roof Group where he oversaw the revenue strategy of over 650 economy hotels. He has held other corporate-level positions with Starwood Hotels and Resorts and Canadian Hotel Income Properties and has been a key advisor for Marriott International in sales and revenue management.
Wiersma holds a BA in Business Administration and Finance. He is an active member of HSMAI (Hospitality Sales and Marketing Association International) and is past chair of HSMAI ‘s Revenue Optimization advisory board. In his spare time, he enjoys spending time with family and friends and on weekends you will often find him flying a Piper Warrior.
Sarvin Construction is a privately owned construction and procurement company with over 10 years of experience. Our expertise is Renovating Hotels! Contact us today to talk about your hotel renovation or procurement needs including Pre-Construction, Construction Management, Project Management(Build/Design) & General Contracting
SARVIN CONSTRUCTION
sarvinconstruction@gmail.com
Our most recent hotel renos include: Super 8 Cornwall, Holiday Inn Whitby, Aloft Vaughan Mills, Radisson Hotel Toronto, Hilton Airport Hotel Toronto, Towne Place Suites Mississauga and Strathcona Hotel Toronto
HOTELS & HOLLYWOOD
BY ALLAN LYNCH
The film French Girl has sent fans flocking to the Fairmont Le Château Frontenac. Released in spring 2024 French Girl follows Gordon Kinski, a high school teacher from Brooklyn, who goes with his chef girlfriend Sophie Tremblay to her hometown Quebec City where she tests for a position with a Michelin-star restaurant to be opened in the Fairmont Le Château Frontenac. It’s a taste-driven romantic comedy which has resonated with fans.
Andree-Ann Groleau, Eastern Canada public relations director of Fairmont Le Château Frontenac and Fairmont The Queen Elizabeth says, “After the movie was released in theatres, special French Girl items were added to the Bistro Le Sam menu, as an ode of the type of food prepared in the movie.”
French Girl isn’t the Chateau’s first time on the big and small screen. Alfred Hitchcock filmed I Confess here. And curiously, the Chateau also appeared in a hugely popular Korean TV series, Guardian: The Lonely and Great God. Groleau says the Korean audience response was so great it spurred the launch of a direct flight from Seoul to Quebec City! She says many guests confirm they are visiting after viewing a specific movie or series and request to see specific rooms shown on the screen.
This is not an unusual response to a popular film or television series. Fans travel.
After the Lord of the Rings film franchise was released so many fans flew to New Zealand they were nicknamed “Tolkien travellers.” Expedia Group says more than half of international clients’ travel plans are inspired by film and television shows. Screen tourism is so significant that in 2024 VisitBritain teamed up with the British Film Institute to harness the growth and highlight visitor experiences related to top international draws like Harry Potter, All Creatures Great and Small, Downton Abbey, Bridgerton and others. One beneficiary of this trend is Castle Howard which, thanks to Bridgerton, experienced a 3,400 per cent increase in 16-24-year-old visitors.
The Plaza Hotel, New York City, USA
San Domenico Palace, Taormina, Italy
“
This is not an unusual response to a popular film or television series. Fans travel.”
Film is story-telling and heritage properties have learned the advantage of telling their stories, whether about productions, famous guests or events which occurred on-site. The Chateau Frontenac has contracted with Cicerone Tours to tell the hotel’s stories. Groleau says Viator Experience Awards rate the Chateau’s tour as one of the Top 20 most popular activities in Canada.
The tour business also works for Fairmont’s other castle-like properties. Meredith Bratland, public relations manager for the Fairmont Banff Springs says a former staff member was an avid amateur historian who developed a hotel tour, which after his retirement continues. In the first seven months of 2024, 7,000 people had taken the tour.
An interesting aspect of Banff Springs’ history is how broadly staff from in-house guest services to river guides and caddies will share that Marilyn Monroe swam in the glacier-fed Bow River when she was there in 1953 with Burt Lancaster to film River of No Return
Another of Banff’s stories is of the dancing bride who died on her wedding night falling down the curved staircase near the Cascades Ballroom. The
story was given credence when The Royal Canadian Mint featured it in their “Haunted Canada” series of coins.
On a more upbeat note is John Lennon and Yoko Ono’s legendary “Bed-in for Peace.” Held in 1969 in Suite 1742 of Fairmont The Queen Elizabeth in Montreal, the couple spent a week in bed, recorded the song Give Peace A Chance and conducted 150 interviews a day with the world’s media. That event still resonates with guests and visitors says Groleau. “Many people, from all generations, still ask to see the suite. One of our bellmen takes a lot of pride in showing them the suite when not occupied by guests. He even sometimes plays them a Beatles song on his guitar.”
Naturally, the suite has been renovated over the decades, but the architects preserved the suite’s historic character. They ensured furniture placement matched how John and Yoko set it up; integrated artwork and artifacts of the era, including a vinyl copy of Give Peace A Chance, into the design; and added a wall of story boxes. Additionally says Groleau, “You can wear a virtual reality helmet and see what the suite looked like.” Thanks to the volume of media coverage of the event, videos exist to provide further context for the bed-in.
John Lennon and Yoko Ono’s first “Bed-in for Peace” at Hilton Amsterdam, Netherlands in 1969
One of the world’s most filmed properties has to be the Fontainebleau Miami Beach. It’s been featured in over 20 films and television series. The Fontainebleau is where James Bond found a nude woman painted gold on his bed in Goldfinger Pretty racy for 1964. It’s also featured in Scarface starring Al Pacino; The Bodyguard starring Whitney Houston and Kevin Costner; Jerry Lewis’ The Bellboy; The Sopranos; and The Marvelous Mrs. Maisel, and others.
While modern Canadian properties, like their host destination, often stand in for US cities, the Fontainebleau Miami Beach is famous enough to always get to be itself. Maya Vargas, account manager for Carma Connected representing the Fontainebleau, says, “Fontainebleau Miami Beach being included in iconic films and shows has made the property a part of pop culture and has added to its historical and cultural significance, making it a landmark destination for all visitors to Miami. It has given the property global exposure, attracting new potential guests who are fans of the production. This can lead to an
increase in bookings, as well as leverage in marketing by using the appearance in a film or show as a selling point in its marketing campaigns, attracting both new and repeat guests. Any association with a popular film or show generates significant social media attention, further enhancing the hotel’s online presence and engagement.” And she says, “The Fontainebleau often sees a business boost when a film or show shot here experiences a revival, anniversary, or re-release.”
You don’t have to have the volume of film history of a Fontainebleau to gain traction with pop culture. Stephen King’s The Shining in the mythical Outlook Hotel, with its blood-filled elevator, ghost-like children and a crazed Jack Nicholson splintering a bathroom door with an axe (a real world talent learned as a volunteer fireman), so horrified fans they continue to visit the real Stanley Hotel in Colorado. The interest is so strong that 43 years after The Shining’s release, a $70-million, 67,000 sq. ft. Stanley Film Center opened on-site, continuing to draw film fans to this remote corner of the US.
Hosting a film or television production can be good for business. Whether the property is offering the traditional accommodations and F&B or expanding service as a film set. It helps to keep local film promotion offices—whether operated by the city or province—up to date with renovations, features, amenities and production history.
Vargas suggests, “When a hotelier is approached by a producer, it’s both an exciting opportunity and a complex decision. The property needs to get a clear understanding of the production’s scale, the areas they want to use, and the duration of the shoot. Consider whether the film or show aligns with your hotel’s brand image. If the production’s content is controversial or doesn’t match your brand values, it might not be worth the exposure. If the production is a good fit, work with the producers to ensure your hotel is portrayed in a way that enhances its appeal. Once the film or show is released, use the association in your marketing materials, social media, and advertising campaigns. And work with the production team to protect the guest experience while filming is underway.”
Famous hotels around the world, including Canada, that have appeared in films and television shows. These hotels have served as iconic backdrops that elevate storytelling, adding atmosphere and character to movies and series.
Hilton Amsterdam, Amsterdam, Netherlands
The site of John Lennon and Yoko Ono’s first “Bed-In for Peace” staged in 1969 to protest the Vietnam War. The second bed-in was held at Fairmont The Queen Elizabeth in Montreal.
The Plaza Hotel, New York, New York, USA
Featured in: North by Northwest (1959), Home Alone 2: Lost in New York (1992), The Great Gatsby (2013)
Fairmont Hotel San Francisco, San Francisco, California, USA
Featured in: Vertigo (1958), The Rock (1996), The Intern (2015)
Four Seasons Resort Maui at Wailea, Maui, Hawaii, USA
Featured in: The White Lotus (2021, Season 1)
Fairmont Le Château Frontenac, Quebec City, Quebec, Canada
Featured in: Catch Me If You Can (2002), Taking Lives (2004)
Grandhotel Pupp, Karlovy Vary, Czech Republic
Featured in: Casino Royale (2006)
Beverly Wilshire, a Four Seasons Hotel, Beverly Hills, California, USA
Featured in: Pretty Woman (1990)
Park Hyatt Tokyo, Tokyo, Japan
Featured in: Lost in Translation (2003)
Fairmont Banff Springs, Banff, Alberta, Canada
Featured in: The Edge (1997), River of No Return (1954)
Chateau Marmont, Los Angeles, California, USA
Featured in: Almost Famous (2000), Somewhere (2010), La La Land (2016)
Hotel del Coronado, Coronado, California, USA
Featured in: Some Like It Hot (1959)
Taj Lake Palace, Udaipur, India
Featured in: Octopussy (1983)
Timberline Lodge, Government Camp, Oregon, USA Featured in: The Shining (1980)
Fairmont Empress, Victoria, British Columbia, Canada
Featured in: Little Women (1994), The Sweet Hereafter (1997)
Villa Balbianello, Lake Como, Italy
Featured in: Star Wars: Episode II – Attack of the Clones (2002), Casino Royale (2006)
The Stanley Hotel, Estes Park, Colorado, USA
Featured in: Dumb and Dumber (1994), The Shining (as inspiration)
Fairmont Royal York, Toronto, Ontario, Canada
Featured in: American Psycho (2000), Serendipity (2001), Cinderella Man (2005)
San Domenico Palace, a Four Seasons Hotel, Taormina, Italy
Featured in: The White Lotus (2022, Season 2)
Ritz Paris, Paris, France
Featured in: The Da Vinci Code (2006), Midnight in Paris (2011)
The Rimrock Resort Hotel, Banff, Alberta, Canada
Featured in: Fargo (2015, Season 2)
Hotel Regina Louvre, Paris, France
Featured in: The Bourne Identity (2002)
The Sutton Place Hotel, Vancouver, British Columbia, Canada
Featured in: The X-Files (1993–2018), Fifty Shades of Grey (2015)
Caruso, a Belmond Hotel Amalfi Coast, Ravello, Italy
Featured in: Wonder Woman (2017)
The Westin Bayshore, Vancouver, British Columbia, Canada
Featured in: Paycheck (2003), Battlestar Galactica (2004–2009)
Fairmont Hotel Vancouver, British Columbia, Canada
Featured in: 50/50 (2011), The Interview (2014)
Aman Venice, Venice, Italy
Featured in: Casino Royale (2006)
Hotel Regina Louvre, Paris, France as seen in The Bourne Identity (2002)
MAY WE RECOMMEND
#WCLC2024
Trade Show Products & Services
FAIRMAS
Fairmas Canada, a subsidiary of Fairmas GmbH, headquartered in Berlin, develops financial planning, controlling and management reporting solutions specifically for the hotel industry. Fairmas’ cloudbased BI solutions are easily incorporated into the hotel’s existing IT software environment and efficiently integrate with other third-party systems, including major property management systems (PMS), accounting systems, revenue management systems, and more. Fairmas also provides data management for hotel assets to standardize and automate the entire portfolio performance reporting. fairmas.com
HOTEL EQUITIES
Hotel Equities is a best-in-class owner, operator, and development firm managing a portfolio of 250+ hotels and resorts throughout the U.S. and Canada. Its hotel management portfolio consists of full-service, select-service, boutique, independent and lifestyle hotels.
It also offers world-class hotel management training programs and collaborates with brand representatives, institutional investors, and high-net-worth individuals, as well as form strategic partnerships with hoteliers to build upon its current portfolio of hotels.
Through the years, Hotel Equities has become a trusted business partner, known for its ability to build equity and generate upside potential. hotelequities.com
NESPRESSO
The Nespresso Professional range of machines includes a variety of options allowing your guests to indulge in worldclass coffee experiences even outside their hotel room. Whether it be in the lobby, in a conference room or at the hotel restaurant, offer them convenient, consistent high quality coffee wherever they go. nespresso.com/pro/ca/en/ hotel-coffee-machine
AVENDRA
Avendra takes the time to learn about the nuances of your business goals, corporate brand strategy, purchasing practices and procurement needs and then tailor a supply chain management solution to meet your requirements—delivering great savings, as well as other benefits. Avendra successfully serves hundreds of properties across Canada with tailored solutions to fit every brand; from unique boutique and long-term living to the industry’s leading hotel chains. avendra.com
GORDON R. WILLIAMS CORP
Gordon R. Williams Corporation offers cost-effective specialized HVAC solutions for both retrofit and new construction, with an extensive range of new and replacement HVAC products available for commercial, institutional and industrial buildings. Not just equipment, Gordon R .Williams Corp. provides total project management and turnkey solutions, no matter how complex your requirements are, including project coordination, start-up analysis as well as service and maintenance plans. williamshvac.com
SAMSUNG ELECTRONICS CANADA, INC.
Samsung’s display technologies provide hotel guests with a modern, integrated, and engaging experience. Since the pandemic, hotels are offering a variety of promotions such as staying more than 24 hours or daytime bookings to enable WFH. Visitors expect a personalized, diverse, and satisfactory experience throughout their stay. Samsung hospitality solutions are designed for guest comfort and hotel staff efficiency. samsung.com/ca/business/ display-solutions/hospitality/
ASSA ABLOY Global Solutions
Providing hotels with advanced electronic locking solutions and a range of tailored services for guest convenience and peace of mind. From spearheading the latest advancements in contactless digital key functionality to pushing the limits on Internet of Things (IoT) connectivity and cloud-based innovation, ASSA ABLOY Global Solutions is committed to remaining at the forefront of innovation to fully serve the hotel security needs of both today and tomorrow. assaabloyglobalsolutions.com/en/ hospitality-solutions
SIMPLE SHOWER SOLUTIONS
Simple Shower Solutions, based in Edmonton, serves customers across North America with innovative, leak-proof shower solutions. Founded by Richard and Lance, seasoned experts in residential renovation since the 1990s, the company emerged from their quest for a reliable, no-leak solution for secondfloor bathrooms in high-end homes. They discovered a market gap and developed a one-piece, ready-to-tile custom drop-in shower pan that is 100% guaranteed not to leak, designed for easy installation by both contractors and DIY enthusiasts.
In a short time, Simple Shower Solutions has established itself as a leading manufacturer of the Ready-to-Tile Shower Base. Their product outperforms competitors by offering superior ease of installation, reliable performance, and excellent value, making it an ideal choice for high-quality renovation projects.
simpleshowersolutions.com
M3
Built by hoteliers, exclusively for hoteliers, M3 is a powerful cloud-based financial platform and services company. Used by over 1,000 management groups and owner-operators, the platform works seamlessly with other key systems and tools in the hospitality industry for hotels of all sizes. M3 offers robust accounting and financial analysis across entire portfolios with optional operations and labour management features.
M3 is a company of over 250 professionals dedicated to hospitality and technology. With a vast array of expertise and partnerships, its team is ready to help you navigate the hotel and accounting industries with cutting-edge tools and invaluable experience.
As the entry point to the M3 platform, Accounting Core provides a set of easyto-use modules that streamline accounting functions. M3 allows hotel owners, management teams, and general managers access to an accurate snapshot across multiple properties improving efficiency and visibility to drive hotel financial performance. m3as.com
MACROTECH
Macrotech was founded with a vision to transform the hospitality industry by providing the best-in-class technological solutions. It has a strong foundation and goodwill of over 23 years and counting. The company’s DNA is customer-centric and strongly believes in relationship building and delivering quality products and services. Its products include advanced hotel Wi-Fi solutions, hotel kiosk hardware, hotel door locks, hotel phone systems, hotel TV STB and hotel ID scanners. macrotechglobal.com
GENUINE COMFORT
Genuine Comfort was founded in 2010 and has evolved to become a room air conditioning equipment distributor to the multi-family residential (apartment and senior living communities) and hospitality markets (hotels) across Canada & Mid-North U.S. In October 2020, Genuine Comfort grew with the acquisition of NRG Equipment Inc. and the Perfect Comfort brand.
genuinecomfort.com
BMO CENTRE AT STAMPEDE PARK
The BMO Centre, located in Calgary’s emerging Culture + Entertainment District and at the heart of the Calgary Stampede, is now the largest and most modern convention centre in Western Canada, spanning over one million square feet. Designed to host major year-round events, it offers a memorable experience with its state-of-the-art architecture and facilities. The centre’s expansion includes three floors of tradeshow and convention space, featuring new exhibition halls, ballrooms, and a central hub, complemented by retail and café spaces, a pavilion, and public art.
In partnership with the Calgary Municipal Land Corporation (CMLC) and Matthews Southwest Hospitality (MSWH), a new convention centre hotel with 220+ rooms will connect directly to the BMO Centre. This marks the first major private investment in Calgary’s Culture + Entertainment District since 2018, enhancing the district’s appeal as a premier destination for events and conventions. venues.calgarystampede.com/ bmo-centre/why-the-bmo-centre
WESTERN FINANCIAL GROUP
Western Financial Group is a diversified insurance services company that is focused on creating security and has provided over one million Canadians with the right protection for more than 100 years. Headquartered in High River, Alta., Western provides personal and business insurance through 179 locations, its affiliates and a variety of connected channels, with a team of approximately 1,800 people. westernfinancialgroup.ca
WYNDHAM
Wyndham is proud to offer 25 brands in a variety of markets and with an incredible range of styles to suit every demographic. It offers the largest and most diverse collection of hotel experiences in the world, with 9,200 hotels in 95 countries. The brand continues to focus on introducing thoughtful prototypes designed to lower development costs, capture greater efficiencies, and prioritize rentable square footage. Taking best practices from La Quinta’s successful Del Sol prototype, Wyndham launched the transformative Moda prototype. Also freshly debuted: a brand new Wyndham Garden interior and exterior prototype and a dual brand prototype for the La Quinta and Hawthorn brands. development.wyndhamhotels.com
INNVEST
With over 100 hotels in its portfolio, representing internationally recognized hotel brands, InnVest is the largest owner of hotels in Canada. Its management team oversees the day-to-day activities of almost 90 hotels, making InnVest the largest operator of hotels in Canada. InnVest’s portfolio is geographically diverse with hotels from Vancouver, British Columbia to Corner Brook, Newfoundland. From roadside inns to luxury urban properties, it is experientially diverse.
Its mission is simple—to deliver outstanding guest experiences and superior returns on quality hospitality investment. innvesthotels.com
PROSTAR CONTRACTING
Since 1997, Prostar Contracting’s “Customer First” mentality has made it a leader in the industry and allowed it to grow to one of the largest construction companies in the Lower Mainland successfully completing over 7,000 projects. Its differentiator is its experienced team.
The company makes sure all of its projects are completed on time, on budget, and with peace of mind. Its extensive in-house trades make it the ideal one-stop contractor for all of your exterior envelope and interior renovation needs. Prostar has established a distinguished record of finishing projects on time and on budget. prostarcontracting.ca
MSI Surfaces
MSI is the leading nationwide distributor of flooring, countertop, wall tile, and hardscaping products in North America.
MSI is focused on improving and innovating ways to service its customers in the most environmentally responsible ways.
MSI offers the greatest product variety in the marketplace. It imports over 75,000 containers per year and manages hundreds of millions of square feet in stock, including over 5,000 SKUs of luxury vinyl tile, porcelain & ceramic tile, quartz countertops, natural stone countertops and tile (granite, marble, travertine, slate, limestone, quartzite, and sandstone), prefabricated countertops, decorative mosaics, and sinks. msisurfaces.com
