Edmonton’s Crowne jewel has local owners

Date:  August, 2010
Location: Edmonton, Alberta
Property Type: Full Service Hotel
Vendor: Allied Hospitality Services
Purchaser: Chateau Lacombe Limited Partnership
Price: $47,800,000
No. of Rooms: 307
Unit Rate: $155,700

EDMONTON—Built originally as a Canadian Pacific Hotel, the Chateau Lacombe Crowne Plaza hotel’s distinctive circular tower has been a part of the Edmonton skyline for over 40 years.

The hotel provides 307 rooms, 11,700 square feet of meeting space, a 675-car parkade, a lounge and La Ronde, a revolving restaurant located on the 24th floor of the building.

The hotel recently completed a $2 million building renovation program with additional $5 million in product improvement work currently underway. The overall condition of the hotel is good.

The site includes development density, which would allow for a further 364,000 square feet of building area—potentially accommodating as many as 275 condominium units.

The purchaser is an Edmonton based group led by a local developer. The hotel will continue to operate under the Crowne Plaza flag.

The purchase price included new financing of $32 million and a Vendor Take Back Mortgage of $11.8 million.

The Edmonton market finished 2009 with occupancy of 64.2 per cent and an ADR of $124.06 which reflected a 13.9 per cent decline in RevPAR.

—Case study courtesy of CBRE Richard Ellis