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  #41  
Old Posted Apr 14, 2020, 4:54 PM
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Many hotels could remain closed for good, Ottawa hotelier says
Half of all hotels in the Ottawa-Gatineau region are closed, thousands out of work

Ryan Patrick Jones · CBC News
Posted: Apr 14, 2020 4:00 AM ET | Last Updated: 8 hours ago


The COVID-19 pandemic has brought tourism to a halt in Canada — guest rooms are empty and thousands of employees are out of work.

One Ottawa hotelier says the situation is so bad he fears many hotels will remain closed for good if the federal government doesn't step in with targeted financial support for the industry.

"They will have absolutely no reason to reopen because financially they won't be able to," said Denis Gilles, general manager of the Hilton Garden Inn and Homewood Suites in downtown Ottawa.

"It will never be back to the way it was," said Gilles, who also sits on the board of directors of the Ottawa-Gatineau Hotel Association.

The Hilton Garden Inn is still open, but has seen a huge drop in business since mid-March, Gilles said.

The decline coincided with travel restrictions and physical distancing measures implemented by the federal and provincial governments to slow the spread of the coronavirus.

"We were at 85 per cent [occupancy] in March … [Now] we have an average of 30 to 40 rooms on any given day, which means 20 to 25 per cent occupancy on a 346-room hotel," said Gilles.

The Hilton Garden Inn is not the only hotel suffering during the pandemic.

Fifty hotels in the Ottawa-Gatineau region are closed which works out to half of the area's hotels, according to data from the Hotel Association of Canada. On top of that, around 5,000 hotel employees are out of work.

Nationally, more than 4,000 hotels are closed and 250,000 workers are affected.

Jessica Lefebvre, who still has a job at the Hilton Garden Inn, considers herself one of the lucky ones. While she's had her hours reduced, Lefebvre continues to work part time cleaning rooms and attending to guests.

"Since the pandemic, it's a complete change," said Lefebvre. "The hotel, it's very quiet ... So we do our best to try to stay positive and uplifting for the guests."

Despite the fact that she continues to work, Lefebvre continues to worry about her job security.

"Right now, I'm just taking it day by day and I'm trying not to think too far in the future," she said.

The federal government has announced a series of measures meant to support businesses through the economic downturn, including a 75 per cent wage subsidy, easy access to credit and tax payment deferrals.

Gilles said the support programs announced so far aren't enough for most hotels to meet their financial obligations — from utility bills to taxes to mortgage payments. He said the government should tailor its assistance to the unique needs of the tourism industry.

"We would like for the government, for [Finance Minister Bill] Morneau and his team, to look at the hotel industry a bit separate from from the rest of the manufacturing, transports, groceries," said Gilles. "We do need a different type of help."

Gilles fears that it will take years for the tourism industry to bounce back to its pre-crisis levels.

In an emailed statement, Economic Development Minister Mélanie Joly said the federal government recognizes the economic impact on the hotel industry and said it would support businesses both during and after the crisis.

"We are on the ground every day, listening to the sector, taking the pulse of the situation, identifying needs and adapting measures in real time," the statement said.

The statement encouraged businesses impacted by the economic downturn to contact their regional development agency, including the Canada Economic Development for Quebec Regions (CED) or FedDev Ontario, for help determining what kind of support they may be eligible for.

With files from Radio-Canada's Jérémie Bergeron

https://www.cbc.ca/news/canada/ottawa/ottawa-hotelier-covid-19-1.5531213
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  #42  
Old Posted Apr 14, 2020, 5:34 PM
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The silver lining might be that this kills the Chateau Laurier expansion.
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  #43  
Old Posted Apr 14, 2020, 7:36 PM
OTownandDown OTownandDown is offline
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I feel for the truly independent hotels.

However those 'boutique' hotels or otherwise owned by a chain hotels. I feel no sorrow for them. Perhaps it's time that their billionaire owners start spreading some of their own money around rather than hoarding it like they've been doing these past 100 years. No government should have to bail out a company owned by a person with a net worth more than $1B.

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Originally Posted by rocketphish View Post
Many hotels could remain closed for good, Ottawa hotelier says
Half of all hotels in the Ottawa-Gatineau region are closed, thousands out of work

Ryan Patrick Jones · CBC News
Posted: Apr 14, 2020 4:00 AM ET | Last Updated: 8 hours ago


The COVID-19 pandemic has brought tourism to a halt in Canada — guest rooms are empty and thousands of employees are out of work.

One Ottawa hotelier says the situation is so bad he fears many hotels will remain closed for good if the federal government doesn't step in with targeted financial support for the industry.

"They will have absolutely no reason to reopen because financially they won't be able to," said Denis Gilles, general manager of the Hilton Garden Inn and Homewood Suites in downtown Ottawa.

"It will never be back to the way it was," said Gilles, who also sits on the board of directors of the Ottawa-Gatineau Hotel Association.

The Hilton Garden Inn is still open, but has seen a huge drop in business since mid-March, Gilles said.

The decline coincided with travel restrictions and physical distancing measures implemented by the federal and provincial governments to slow the spread of the coronavirus.

"We were at 85 per cent [occupancy] in March … [Now] we have an average of 30 to 40 rooms on any given day, which means 20 to 25 per cent occupancy on a 346-room hotel," said Gilles.

The Hilton Garden Inn is not the only hotel suffering during the pandemic.

Fifty hotels in the Ottawa-Gatineau region are closed which works out to half of the area's hotels, according to data from the Hotel Association of Canada. On top of that, around 5,000 hotel employees are out of work.

Nationally, more than 4,000 hotels are closed and 250,000 workers are affected.

Jessica Lefebvre, who still has a job at the Hilton Garden Inn, considers herself one of the lucky ones. While she's had her hours reduced, Lefebvre continues to work part time cleaning rooms and attending to guests.

"Since the pandemic, it's a complete change," said Lefebvre. "The hotel, it's very quiet ... So we do our best to try to stay positive and uplifting for the guests."

Despite the fact that she continues to work, Lefebvre continues to worry about her job security.

"Right now, I'm just taking it day by day and I'm trying not to think too far in the future," she said.

The federal government has announced a series of measures meant to support businesses through the economic downturn, including a 75 per cent wage subsidy, easy access to credit and tax payment deferrals.

Gilles said the support programs announced so far aren't enough for most hotels to meet their financial obligations — from utility bills to taxes to mortgage payments. He said the government should tailor its assistance to the unique needs of the tourism industry.

"We would like for the government, for [Finance Minister Bill] Morneau and his team, to look at the hotel industry a bit separate from from the rest of the manufacturing, transports, groceries," said Gilles. "We do need a different type of help."

Gilles fears that it will take years for the tourism industry to bounce back to its pre-crisis levels.

In an emailed statement, Economic Development Minister Mélanie Joly said the federal government recognizes the economic impact on the hotel industry and said it would support businesses both during and after the crisis.

"We are on the ground every day, listening to the sector, taking the pulse of the situation, identifying needs and adapting measures in real time," the statement said.

The statement encouraged businesses impacted by the economic downturn to contact their regional development agency, including the Canada Economic Development for Quebec Regions (CED) or FedDev Ontario, for help determining what kind of support they may be eligible for.

With files from Radio-Canada's Jérémie Bergeron

https://www.cbc.ca/news/canada/ottawa/ottawa-hotelier-covid-19-1.5531213
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  #44  
Old Posted Apr 14, 2020, 8:43 PM
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Originally Posted by Kitchissippi View Post
The silver lining might be that this kills the Chateau Laurier expansion.
Hadn't thought of that. Though the expansion was supposed to be larger suites for medium to long term stays, probably targeted at MPs, so don't wager your life savings on that just yet.
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  #45  
Old Posted Jul 20, 2020, 9:53 PM
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Road-trippers trigger uptick in downtown Ottawa hotel traffic

David Sali, OBJ
July 20, 2020


The COVID-19 pandemic may have decimated his industry, but a new wave of leisure travellers drawn to Ottawa’s greenspace, outdoor patios and other attractions has hotelier Wayne Day seeing a few rays of hope on the horizon.

The new general manager of the Hilton Garden Inn and Homewood Suites took the reins of the downtown Ottawa lodgings back in May, when coronavirus fears and travel restrictions meant only a couple dozen of the properties’ combined 346 rooms were occupied, creating a gloomy outlook for the summer holiday season.

Almost three months later, the hotels are now running at about 40 per cent capacity ​– still well below the mark of 85 per cent in March and nowhere near the usual level of occupancy for peak summer holiday season, but still at least a bit of reason for optimism, Day says.

Business has been better than expected thanks to a few factors, he explains.

The hotel managed to land a couple of corporate bookings that brought extended stays, including a group from Amazon that is doing training sessions at the e-commerce giant’s distribution centre on Boundary Road.

In addition, Day says he’s seeing an uptick in car traffic from nearby centres such as Montreal, Toronto and Quebec City as stir-crazy urbanites look to escape their immediate surroundings for a few days after months in lockdown.

“I guess we’ve been pretty fortunate, actually,” says the hospitality industry veteran, who previously worked for the Casino du Lac Leamy before joining the Hilton as hotel manager two years ago. “We can’t really complain that much. A lot of people are in worse situations than us.”

The hotel recently launched a promotion with reduced rates on rooms, parking and breakfast that seems to be paying off, Day says. He says many guests are making snap decisions to hit the road, cutting the typical booking window from almost three weeks down to three days.

“It’s all last-minute (reservations),” he says.

More tourists are bringing their bikes to take advantage of the capital’s trails and explore the city while physically distancing, he adds, in addition to seeing its sights on foot.

“There’s so many places to walk around in the city,” he says. “You can still go to the ByWard Market, go to the patios.”

More hotels reopening

At the Chateau Laurier, which reopened on Canada Day after being closed since late March, the venerable lodging is also “seeing nice traction,” says director of public relations Deneen Perrin.

“We are starting to see the phones ringing,” she says. “Obviously, it’s not the usual summer traffic, but there is some pickup.”

Like Day, Perrin says a hefty chunk of the hotel’s customers are from Toronto, Montreal and other places within easy driving distance, and many of them are coming with their bicycles in tow.

“That seems to be a trend now,” she says, adding sales are being buoyed by a current promotion that’s offering guests one free night’s stay for every night they pay to stay in the hotel until the end of the year.

About two-thirds of the region’s hotels are now in operation, up from about 50 per cent at the height of the lockdown, says Ottawa Gatineau Hotel Association president Steve Ball.

The capital’s overall average occupancy rate is “inching its way up slowly,” he adds, and now stands at about 20 per cent. While that’s more than double what it was in the spring, it’s still a long way from summer norms of about 80 per cent.

Ball remains hopeful that Ottawa’s location in a geographic sweet spot between the country’s two largest urban areas and the capital’s array of natural attractions that allow for plenty of physical distancing will encourage residents in nearby cities to hop in their cars and pay Canada’s capital a visit.

“That’s why we believe short road trips … staying in a hotel and doing a patio or going to a museum or the national gallery is a desirable opportunity for people as an option to get a little travel in this summer,” he says.

Back at the Hilton, Day says he and his fellow hoteliers need to do whatever they can to boost business in a dry summer for tourism. He recently opened a 40-seat patio at the Queen Street property that’s now drawing thirsty customers from the surrounding neighbourhood as well as the hotel itself, and his employee headcount has bounced back from a low of 11 a few months ago to about 50 today.

“You have to almost reinvent yourself every week,” Day says.

Still, with the Canada-U.S. border closed to car traffic and 50-permit limits on indoor gatherings scuttling virtually all meeting and convention business, Ball says many hotels can expect to struggle for some time to come.

“I just think it’ll be a fairly long, slow road ahead of us to recover to the numbers that we were at in 2019,” he says.

https://obj.ca/article/road-trippers-trigger-uptick-downtown-ottawa-hotel-traffic
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  #46  
Old Posted Jul 20, 2020, 10:06 PM
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I wonder how long some of these hotels can stay afloat at 40% occupancy? Normally, they’d be running at more than double that, no?
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  #47  
Old Posted Jul 21, 2020, 12:55 PM
OTownandDown OTownandDown is offline
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LOL that Chateau Laurier 'Deal' reminds me of One-for-One Pizza..

oh wait, no, Two-for-One pizza One for One is a downtown Ottawa thing! At least at one-for-one you know what you're getting.

You pay for two, while buying just one, and we'll give you the second one FREE!

Seriously though, the two-for-one deal at the Chateau is over $450 per 'night' with a second night absolutely FREE! What a deal!

Edit: I should also say that I've known several people who've stayed here in the last 12 months for less than $100/night!
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  #48  
Old Posted Jul 22, 2020, 3:23 AM
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Originally Posted by OTownandDown View Post
LOL that Chateau Laurier 'Deal' reminds me of One-for-One Pizza..

oh wait, no, Two-for-One pizza One for One is a downtown Ottawa thing! At least at one-for-one you know what you're getting.
You're really making me miss Three For One Pizza. That was the best deal on anything ever.
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  #49  
Old Posted Jul 22, 2020, 12:46 PM
OTownandDown OTownandDown is offline
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Originally Posted by mykl View Post
You're really making me miss Three For One Pizza. That was the best deal on anything ever.
I like the honesty of a One-for-One. Italian accent: "You want a-one? You get a-one! You pay, I give-a you-a one!"
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  #50  
Old Posted Jul 22, 2020, 3:42 PM
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Originally Posted by OTownandDown View Post
I like the honesty of a One-for-One. Italian accent: "You want a-one? You get a-one! You pay, I give-a you-a one!"
I like the joke of it for sure, but their pizza is warm cardboard*

*I'd still eat it though haha
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  #51  
Old Posted Jul 22, 2020, 9:20 PM
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Looks like the SANDMAN SIGNATURE OTTAWA AIRPORT HOTEL on Hunt Club Rd. is FINALLY open.
(After being under construction for over 5 years now???)
And it’s a very nice hotel inside! And close to shopping and restaurants! I didn’t mind my stay there at all!
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  #52  
Old Posted Jul 27, 2020, 10:23 PM
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Despite hospitality downturn, backers of new Kanata Wingate hotel eager to open doors

By: David Sali, OBJ
Published: Jul 27, 2020 4:57pm EDT




One of the major local investors behind a new hotel in Kanata says the group is champing at the bit to open the new property – despite the city being in the throes of what’s likely the worst year for tourism in decades.

“There is uncertainty, but we know that we have a good product,” said Denis Shank, a local real estate broker and one of the financial backers of the new Wingate by Wyndham Kanata West Ottawa hotel. “We’re excited.”

The 122-room lodging on Campeau Drive, just a few slapshots west of the Canadian Tire Centre and a block from the Tanger Outlets mall on the north side of Highway 417, is slated to open soon – although exactly when is still not set in stone.

“We’re really trying to find the right timing,” Shank said, adding the ownership group is now aiming for a late-summer launch date. “We want to get going.”

Shank says he’s been constantly monitoring occupancy rates in the Ottawa region, which have gradually risen from around five per cent at the height of the COVID-19 pandemic to above 20 per cent recently. He said the owners remain confident the local hotel market is once again on an upswing that will pave the way for a late-summer or early-fall opening.

“There’s no (playbook) that’s been written on this,” he said. “We are hopeful that the (occupancy) trend will continue climbing. We want to get into the action sooner than later.”

Shank said Ottawa’s steady-as-she-goes government-driven economy has managed to hold its own during the pandemic, with the tech sector in particular showing resilience that bodes well for a bounceback.

“We’ll get through this,” he said. “This is Ottawa – the most stable economy in the country. The tech world is on fire. We know the market is there.”

With seasoned hotel executive Ken Kirby at the helm as general manager, Shank said he expects the new project – which features a 2,000-square-foot meeting space and a full-service fitness centre as well as an indoor pool and jacuzzi – to navigate through the current economic turbulence and come out on the other side relatively unscathed.

“We’re not expecting great numbers (right away), but we’re confident that before the end of the summer, there will be some business traction,” he said.

“We’re going to start out slowly like other ventures that are in this industry. We’re confident that in no time … things will continue gradually climbing back, and we want to be ready for that.”

While Shank, the managing partner of Ottawa’s Capworth Commercial Realty Brokerage, wouldn’t give an exact price tag for the project, he said similar hotels typically cost in the “twentysome-million-dollar” range. The hotel’s other backers include Boreal Hospitality Group, which owns and manages Wyndham-branded properties across Eastern Canada.

Under ordinary circumstances, such a project would probably be considered a sound investment.

In addition to its proximity to shopping and NHL hockey ​– whenever it returns to the city – the new property is also a just a few minutes’ drive from Taggart Realty’s burgeoning Kanata West Business Park.

The new 300,000-square-foot commercial development across from the CTC is attracting a number of big-name tech tenants, including fast-growing software firm Kinaxis, which is moving its headquarters to a building now under construction on the site.

On nearby Palladium Drive, meanwhile, auto giant Ford operates a major R&D facility next door to the headquarters of another locally based corporate powerhouse, Calian Group. With the Bell Sensplex rink complex in the same neighbourhood, Shank and his partners figure it’s a good bet that the new hotel will attract business travellers in town for meetings from Monday to Friday, then draw families with kids taking part in hockey tournaments and other events on weekends.

But as the veteran real estate executive knows all too well, these are not normal circumstances. The COVID-19 lockdown dealt a crippling blow to tourism in the National Capital Region this summer, forcing the cancellation of virtually every major festival and event.

While occupancy at some downtown hotels has crept up in the past couple of weeks on the strength of domestic road-trippers from Toronto and Montreal, the local industry as a whole continues to suffer, with overall occupancy rates far below the 80 per cent levels normally seen in peak summer season and about a third of all lodgings in the region still shuttered.

With the Canada-U.S. border closed to car traffic and 50-person limits on indoor gatherings scuttling virtually all meeting and convention business, industry leaders concede many hotels in the capital will likely continue to struggle for some time to come.

“I just think it’ll be a fairly long, slow road ahead of us to recover to the numbers that we were at in 2019,” Ottawa Gatineau Hotel Association president Steve Ball told OBJ last week.

https://www.obj.ca/article/local/tourism...kers-new-kanata-wingate-hotel-eager-open
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  #53  
Old Posted Aug 29, 2020, 4:05 PM
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Shady south-end crime 'haven' motel will be closing
The motel, the city has argued in court filings, is a "haven for heavy drug use, prostitution and other illicit activities."

Jon Willing, Ottawa Citizen
Publishing date: Aug 28, 2020 • Last Updated 20 hours ago • 2 minute read




A notorious motel in south Ottawa could be checking out for good.

The New Highway Inn at 2279 Prince of Wales Dr. has been in city hall’s regulatory crosshairs for more than a year as it tries to close the motel in a rare attempt of using judicial force to stomp out a community nemesis.

The motel, the city has argued in court filings, is a “haven for heavy drug use, prostitution and other illicit activities.”

Word started to spread through neighbourhoods around the motel this week that the seedy property could be fenced off within days.

During a short phone conversation Friday, motel owner Noorali Adatia said he intends to close the motel but wasn’t certain of exactly when it would happen.

Knoxdale-Merivale Coun. Keith Egli said bylaw staff were recently at the property responding to a complaint when a representative of the motel indicated the building would be vacant and closed down by the beginning of September.

Bylaw Chief Roger Chapman also indicated that a motel rep told his branch that the motel was in the process of closing operations.

“It is certainly my hope that this comes to pass as the situation has been going on far too long and the surrounding community has been more than patient,” Egli said

The two-storey motel south of Hunt Club Road became such a problem for law enforcement, paramedics and building officials that the city filed an application in Superior Court in summer 2019 to have the place closed, at least on a temporary basis.

The city is relying on a section of the Ontario Municipal Act that allows a judge, after considering an application from a municipality, to shut down a premises because of “public nuisance.”

It was the first time the city attempted to use the legislation to shut down a problematic property and there were only two other times that municipalities made similar applications to the courts since the section of the Municipal Act came into force in 2006. The law allows a maximum closure of two years.

The city’s court application chronicled years of police calls to the motel and cited 353 police records related to the property. There had been an “endless cycle of drug overdoses and crime” at the motel in the three years before the court received the city’s request, according to the court document.

Activities at the motel “continue to have a spillover effect on the surrounding community and it has created a real concern for public safety and nuisance,” the city said in its application.

The city has also expressed concerns about the building’s safety after a fire in 2016 damaged a large part of the motel.

A judge hasn’t tested the city’s application. A hearing is scheduled in November.

At the time of the city’s application to the court the motel was only renting rooms for long-term stays.

Adatia, who bought the motel more than 35 years ago, has been interested in redeveloping the property, which stretches from Prince of Wales Drive to the Rideau River. He has said he knows nothing about the criminal activity at the motel alleged by the city.

[email protected]
twitter.com/JonathanWilling

https://ottawacitizen.com/news/local-new...cm/0b93eeb7-779f-4f15-b0bb-c2a4ec4ee929/
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  #54  
Old Posted Aug 29, 2020, 6:08 PM
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“haven for heavy drug use, prostitution and other illicit activities.”

Surely those kinds of activities have some sort of land use protection
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  #55  
Old Posted Sep 2, 2020, 12:55 PM
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Speaking of new hotels, I noticed the Hilton Garden Inn on Moodie is nearing completion.
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  #56  
Old Posted Sep 2, 2020, 2:58 PM
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Speaking of new hotels, I noticed the Hilton Garden Inn on Moodie is nearing completion.
Where dat?
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  #57  
Old Posted Sep 2, 2020, 4:48 PM
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Where dat?
https://skyscraperpage.com/forum/showthread.php?t=238412
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  #58  
Old Posted Sep 2, 2020, 5:04 PM
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Speaking of new hotels, I noticed the Hilton Garden Inn on Moodie is nearing completion.
The brand will actually be a Hyatt Place. A business colleague I've known for a few years is the new GM there.

https://www.hyatt.com/en-US/hotel/canada...owzo?src=vanity_hyattplaceottawawest.com

While the hotel industry is at rock bottom right now, technology like keyless entry, contactless checkin etc.. will go a long way for smaller properties like this one in this environment and whatever unfolds. Just drive up and walk into your room.

The bigger hotels attracting more national and international conferences have a long difficult ride back to profitability and I would not be surprised to see a conversion or 2 of a downtown property to longer stay or other use.

The whole travel and events sector (business and leisure) has been obliterated by Covid. MGM just announced permanent layoffs of 18 thousand workers at their properties.
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  #59  
Old Posted Oct 29, 2020, 2:53 AM
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Two downtown hotels converting to apartments - the Best Western on O’Connor and the Albert at Bay.

https://obj.ca/article/local/tourism/alb...owntown-hotels-being-converted-long-term
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  #60  
Old Posted Oct 29, 2020, 1:08 PM
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Two downtown hotels converting to apartments - the Best Western on O’Connor and the Albert at Bay.

https://obj.ca/article/local/tourism/alb...owntown-hotels-being-converted-long-term
Albert at Bay, Best Western Plus downtown hotels being converted to long-term rentals after sale

David Sali, OBJ
Oct 28, 2020



The Albert at Bay Suite Hotel was recently sold to a new owner who is planning to convert the property into rental apartments. Photo by David Sali

In a move that some observers say could become increasingly common as hospitality property owners look to wring more value out of their investments during the pandemic, two major downtown Ottawa hotels are being converted into long-term rental complexes.

The Albert at Bay Suite Hotel at 435 Albert St. and the Best Western Plus at 377 O'Connor St. shut their doors earlier this month after being sold to a new ownership group. On Wednesday, the head of the city’s main hotel industry organization confirmed to OBJ that the buyer plans to turn both lodgings into rental apartments.

“They’re particularly suited for that because they were suite hotels,” said Steve Ball, the president of the Ottawa Gatineau Hotel Association. “They've got kitchens, they’ve got laundry facilities in each suite.”

Jake Levinson, a member of the Levinson Group of Companies that previously owned both hotels, wouldn’t say who purchased the properties and refused to divulge any financial details of the transaction.

The sale marked the end of an era for the family-owned business. Jake’s grandfather, Jacie Levinson, originally developed the Albert at Bay as a rental apartment property before it gradually transitioned to a suite hotel in the mid-1980s. The family later opened the Best Western on O’Connor Street in the early 1990s.

Levinson told OBJ the new owner initially made an “unsolicited offer” for the hotels in February, before widespread measures aimed at curbing the spread of the coronavirus crippled the industry.

'It made a lot of sense'

“What was a good deal for us forgetting about COVID became an even better deal as time went on,” he said. “It made a lot of sense to move forward with the deal.”

Levinson said the hotels ​– which relied heavily on business travellers and employed a combined 120 people at their peak ​– have been as much as 95 per cent empty over the past few months, making it virtually impossible to run a viable operation.

“Five to 10 per cent (occupancy) doesn't pay the bills,” he explained. “We just really didn’t know what the future held for us or for the Ottawa tourism industry or the hotel industry at large.”

With real estate firm CBRE and other analysts predicting the hard-hit hotel industry won’t return to last year’s levels until 2023 at the earliest, Ball said he wouldn’t be surprised to see other owners of suite hotels convert their properties into rentals – at least in the short term until the hospitality industry gets back on its feet.

Ottawa’s rental vacancy rate was below two per cent in 2019, making a shift to apartments the obvious pivot for landlords looking for a steadier income stream, he explained.

“There's some real logic in doing that right now,” Ball said. “There’s demand for downtown rentals. An owner facing those kinds of challenges might decide, let’s take advantage of long-term rental for a while.”

Veteran Ottawa hotel executive Ross Meredith agreed. The general manager of the Westin and Delta Ottawa City Centre said landlords at virtually deserted hotels will likely be “willing to get a little bit creative” to find new sources of revenue as a long winter looms for the industry.

“I think hotels that have kitchens and any sort of laundry facilities, they could be easily converted into a different use for a period of time,” Meredith said. “Every owner is going to be looking at how they pay their bills and how they cover their costs through this difficult time.”

Ball said the next few months could be a make-or-break period for many hotel operators. He said most lodgings in Canada are owned by small and medium-sized companies rather than large hotel brands.

Heavily leveraged

“A lot of them are quite heavily leveraged,” he said, pointing to a recent industry study that suggested as many as four in 10 hotels across Canada might not survive the winter without significant financial aid. “They’re the ones that are at risk unless we get some liquidity breaks for them.”

Occupancy is currently hovering around 10 per cent in Ottawa, Ball said. He said about 75 per cent of the capital region’s hotels are still open, but he’s not sure how many will stay in operation through the winter.

“Certainly, the next five to six months are going to be critical for a number of properties,” he said. “There’s no committed demand.”

Ball said the industry is hoping that COVID-19 infection rates in provincial hot spots fall enough to warrant an easing of public health measures and make would-be travellers more comfortable with taking a road trip to the nation’s capital.

“I think Ottawa has some opportunities from a leisure perspective this winter,” he said. “We have Winterlude, we have Christmas lights, we have a lot of outdoor activity that ​– if the province would just suggest that a road trip from Toronto to Ottawa on the weekend is probably as safe as anything ​– we could probably pick up on some leisure travel this winter.

“As long as the province keeps telling everybody to stay home, our industry is going to stay hurting. I’m not sure how much longer a lot of people can hang on.”

https://obj.ca/article/local/tourism/alb...owntown-hotels-being-converted-long-term
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