Pacific Reach and Dilawri Group of Companies say they purchased The Ritz-Carlton in downtown Toronto for $247.7 million in a high-profile deal that comes as Canada's hotel industry shows signs of improvement.
"Marriott International will continue to manage the hotel under The Ritz-Carlton brand without disruption to operations," Pacific Reach and Dilawri said in a statement.
Pacific Reach and Dilawri paid approximately $247.7 million, or $941,650 per room, for the Ritz-Carlton, Toronto, according to CoStar data.
The seller was Cadillac Fairview, the real estate arm of the Ontario Teachers' Pension Plan that owned the hotel that is part of a mixed-use tower. The company could not immediately be reached for comment.
"The Ritz-Carlton, Toronto is a true luxury landmark in the heart of downtown," said Kap Dilawri, co-founder of Dilawri, in a statement.
The sale comes as the Canadian hotel market appears poised for an upswing. The average daily rate for hotels in Canada was $239.06 in June, according to CoStar data.
Improving national fundamentals
That represents a 2.9% increase from the same month in 2024. Revenue per available room, or RevPAR, was $180.77 in June, a 4.4% increase compared to the same period last year, according to CoStar.
CoStar News reported in June 2024 that the first 20 floors of the Ritz-Carlton at 181 Wellington St. W were being marketed for sale for $447 million. The floors contain 263 hotel rooms.