- What Synergy Properties has put Best Western The Westerly Hotel in play
- Why The expected valuation comes to about $284,000/room
- What next A buyer could achieve a nearly 8% cap rate
Synergy Properties Ltd. is looking to offload a hotel in Courtenay, B.C., that’s expected to fetch bids around $19m, Green Street News can reveal.
The valuation for the 67-suite Best Western The Westerly Hotel works out to $284,000/room. At that price, a buyer would achieve a first-year cap rate of nearly 8% for the hotel portion of the property, which also includes nearly 10,000 sq ft of commercial retail space. The combined cap rate is approximately 7.75%.
Cushman & Wakefield’s national capital-markets group has the assignment
Synergy Properties acquired the property in 2017. The hotel was built in 1979 and underwent a 36-room expansion in 2009. Capital expenditures over the past two years include new air-conditioning units and beds, as well as the replacement of the lock system. The roof is being replaced.
Amenities include the Flying Canoe West Coast Pub, the Chalk Lounge and a fitness centre. Renovations are in progress to bring in hot tubs, a cold tub and a sauna.
At 1590 Cliffe Avenue, the Best Western The Westerly Hotel is less than a kilometre from downtown Courtenay and the Courtenay Airpark, 6.5 km from the Comox Valley Airport and 24 km from Mount Washington Skiing Alpine Resort.
Courtenay is the largest urban centre in the Comox Valley. On the east coast of Vancouver Island, the city is 93 km from Nanaimo and 143 km from Vancouver.
There are fewer than 550 hotel rooms in the city. Over the past three years, occupancy at the Westerly Hotel has averaged approximately 84%.
Synergy Properties acquires, manages and develops real estate in Alberta, B.C. and Texas. Graham Horton, Melissa Noel and Kyle Ulinder are partners of the private, Vancouver-based company.
