Le Meridien King Edward Hotel
Sales Date: March 2010
Client: Starman Hotels
Buyer: Skyline International Development JV Dundee REIT & High-Net-Worth Capital
Cap Rate: 2.6%
Colliers Hotels' Toronto and London UK offices acted on behalf of Starman Hotels in the sale of this 298-room hotel in downtown Toronto. Spanning one full city block, facing King Street East the property is improved by an 18 storey tower and eight storey main building. At the time of sale, three full floors of the property, with a total gross floor area of approximately 120,000 SF, had been vacant since 2005. The purchaser, a local developer, has subsequently sold luxury condominium units on the vacant floors and has plans to restore the 8,000 SF Crystal Ballroom, in addition to re-configuring the ground floor retail space to accommodate a new luxury restaurant/bar.
Colliers actively solicited international investors, although it was a local investment partnership led by Skyline International Development that attributed premium pricing to the re-development component of the offering.