Vancouver Island Hotel, Motel & Inn Appraiser
Frontier Hospitality Advisor is a British Columbia based hotel, motel & inn appraisal service. I specialize in appraising Vancouver Island Hotels, Motels & Inns for refinancing or purchase financing, foreclosure or power of sale, divorce or settlement, purchase or sale considerations, legal purposes, estate & retirement planning.
Specializing in the hospitality industry allows me to stay up to date on all of the latest trends, transactions, inventory and key performance indicators. Below are some of the latest statistics for the Vancouver Island hotel, motel & inn industry that will help you develop an estimate of value for your lodging property:
Sample Vancouver Island Hotel, Motel & Inn Sale Capitalization Rates:
The following list reflects capitalization rates for Vancouver Island hotels, motels & inns that have been derived from recent sales in my extensive transaction database.
Capitalization Rate = Net Income / Sale Price
- Best Western Austrian Chalet, Campbell River – 7.1% cap
- Quality Inn Downtown Inner Harbour, Victoria – 7.1% cap
- Brentwood Bay Resort & Spa, Victoria – 7.8% cap
- Thunderbird Motor Inn, Duncan – 8.5% cap
- Coast Discovery Inn, Campbell River – 9.2% cap
- Ocean Village Beach Resort, Tofino – 10.0% cap
- Travelodge Silver Bridge Inn, Duncan – 11.0% cap
- Hospitality Inn, Port Alberni – 11.0% cap
- The Anco Inn, Courtenay – 11.4% cap
These historical capitalization rates range from 7.1% to 11.4%
My appraisal will estimate your property’s net income before debt service and depreciation by preparing a forecast of income and expenses. The result will be utilized to estimate market value via a direct capitalization technique.
Estimate of Market Value = Net Income / Capitalization Rate
Because lodging facilities are income-producing properties that are normally bought and sold on the basis of capitalization of their anticipated stabilized earning power, often the greatest weight is given to the value indicated by the income capitalization approach.
Sample Vancouver Island Hotel, Motel & Inn Sale Prices Per Room:
Another way that hotels, motels & inns are commonly valued is the sales comparison approach which uses sale prices per room of similar properties to provide an indication of the subject property’s value.
The following sample of lodging property sales on Vancouver Island will help you develop a broad value range for your hotel, motel or inn:
- Huntingdon Hotel and Gatsby Mansion, Victoria – $41,900 per room
- Western 66 Motor Inn, Saanichton – $47,100 per room
- Howard Johnson Hotel, Victoria – $47,500 per room
- Traveller’s Inn (Queens Avenue), Victoria – $52,400 per room
- Traveller’s Inn (Gorge Road), Victoria – $52,500 per room
- The Anco Inn, Courtenay – $54,400 per room
- Ocean Marina Hotel, Port Alberni – $58,300 per room
- Travelodge, Courtenay – $58,800 per room
- Port Augusta Inn and Suites, Comox – $59,800 per room
- Super 8, Duncan – $61,400 per room
- Metro Inn, Victoria – $72,900 per room
- Hospitality Inn, Port Alberni – $84,000 per room
- Seabreeze Inn, Salt Spring Island – $87,500 per room
- Best Western Austrian Chalet, Campbell River – $90,700 per room
- Ramada, Victoria – $92,200 per room
- The Fairmont Empress Hotel, Victoria – $100,600 per room
- Best Western Cowichan Valley Inn, Duncan – $102,400 per room
- Comfort Inn & Suites, Victoria – $121,700 per room
- Quality Inn Downtown Inner Harbour, Victoria – $130,200 per room
- Coast Discovery Inn, Campbell River – $136,400 per room
- Ocean Village Beach Resort, Tofino – $145,100 per room
- Travelodge Silver Bridge Inn, Duncan – $190,900 per room
- Paul’s Motor Inn, Victoria – $200,000 per room
- Abigail’s Hotel, Victoria -$220,650 per room
- Best Western Plus Inner Harbour, Victoria – $451,400 per room
The sales outlined above indicate a value range of $41,900 to $451,400 per available room. Several adjustments will be necessary to render these sales prices applicable to your property. The adjustments, which tend to be subjective, diminish the reliability of the sales comparison approach; furthermore, typical hospitality property investors employ a sales comparison procedure only to establish broad value parameters.
Vancouver Island Hotel, Motel & Inn Industry Overview:
- There are approximately 641 lodging properties located in the Vancouver Island tourism region.
- There are more properties classified as Inns, Bed & Breakfasts as well as Cottages found in this region than in any other tourism region in the province. In total, these categories comprise 61.9% of all accommodation facilities in the region, but only 14.2% of the total regional accommodation capacity. The large proportion of small-scale facilities that populate Vancouver Island and the Gulf Islands contributes greatly to the accommodation profile of the region.
- Hotels and motels account for over three quarters (76.0%) of the total regional accommodation capacity.
Top Markets for Vancouver Island
British Columbia residents make up the largest share of overnight visitation (62%) and spending (41%) in Vancouver Island. Although there are slightly more Washington visitors to Vancouver Island, Albertans spend more money while visiting Vancouver Island.
Transportation to Vancouver Island
Because there are limited options when it comes to getting to Vancouver Island, transportation plays a vital role in the overall health of the tourism sector. The image below, shows that using BC Ferries is by far the most popular mode of travel to Vancouver Island.
Vancouver Island Hotel, Motel & Industry Research Reports:
Tourism is a major economic contributor to Greater Victoria. The tourism industry contributes directly to the employment and economic growth of the region through activities and operations of firms providing products and services to tourists, and is therefore a significant source of economic development for Greater Victoria, the province of British Columbia (BC), and beyond.
The Southern Gulf Islands Community Tourism Study is a broad-based study of tourism on the islands of Salt Spring, North Pender, South Pender, Galiano, Saturna and Mayne. This study is a joint effort by the Salt Spring Island Electoral Area and the Southern Gulf Islands Electoral Area of the Capital Regional District (CRD).
Given its size and proximity, Vancouver/Lower Mainland is an extremely important target market for the Victoria and Vancouver Island tourism sectors. Despite its vast potential, there is a sense among tourism industry experts that the Victoria/Vancouver Island tourism industry could be doing more to capitalize on the opportunity this significant market has to offer.
This profile provides a general overview of the region and summarizes the latest data available about overnight travellers visiting the Vancouver Island region.
This visitor profile was created for Vancouver Island North Tourism, in partnership with the local region and The Sociable Scientists. Between June and September 2018, twenty-five ballot boxes were placed across the region in businesses and operations that visitors frequent.
The Greater Victoria Destination Development Strategy (DDS) is a product of Destination BC’s (DBC) Destination Development Program (an integrated strategic planning process) co-led by Destination BC and Destination Greater Victoria.
The South Central Island planning area encompasses an exceptionally diverse range of landscapes and ecosystems; from rainforests, meadows, mountains and marshes, to beaches, rivers, lakes, and oceans. Spanning from the west coast of Vancouver Island to the inside passage, the planning area is comprised of three regional districts: Alberni-Clayoquot, Nanaimo and Cowichan, and the Southern Gulf Islands, and 24 First Nations.
Vancouver Island Tourism & Hotel Associations:
Capital Regional District:
Cowichan Valley Regional District:
Nanaimo Regional District:
Alberni-Clayoquot Regional District:
Comox Valley Regional District:
Strathcona Regional District:
Regional District of Mount Waddington:
This article has been prepared by Frontier Hospitality Advisor for general information only. Frontier Hospitality Advisor makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Frontier Hospitality Advisor excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this article and excludes all liability for loss and damages arising there from.