- What Mundi Hotels acquired the future Hyatt Place Metrotown within the Highline Metrotown tower
- Why Thind Properties offloaded the 159-key hotel for $297,000/room
- What next The hotel is expected to open in 2025
Mundi Hotel Enterprises has acquired an office-to-hotel conversion in Metro Vancouver for $47.2m.
The valuation for the 159-key future Hyatt Place Metrotown is $297,000/room. Colliers represented the buyer and CFO Capital provided financing.
At 6505 Sussex Avenue in Burnaby, the acquisition represents the 10-storey podium of the 48-storey mixed-use Highline Metrotown tower.
The 70,000 sq ft podium was initially planned to be office space and street-facing retail. The seller, Thind Properties, submitted a rezoning application in October 2023 to convert the office component into a hotel. It was approved by the City of Burnaby in February.
Highline Metrotown was completed in 2023. Hyatt Place Metrotown is expected to open in 2025.
With ongoing weakness in the office market and strong fundamentals in the hotel industry, developers have been increasingly eyeing conversions.
Examples include Concord Hospitality and PBA Group’s repurposing of the Canadian Centre into a 226-room hotel, to be called the Element by Westin Calgary Downtown. In Vancouver, where there is a shortage of hotel rooms, Synvest is revitalizing the Arts & Crafts building into a 73-key independent hotel. And in Toronto, the planned office component of the Freed Hotel and Residence has been rezoned into a 117-room hotel.
Daljit Thind is the founder and chief executive of Burnaby-based Thind. Ron Mundi is founder, president and chief executive of Mundi Hotels, headquartered in Kamloops.
