Market Performance | Luxury Hotel Residences
The Luxury Hotel Residences Market | At A Glance
Some of the most desirable buildings in Toronto have a luxury hotel brand attached to them. By some measures there are four preeminent luxury hotel brands in Toronto. The Ritz-Carlton, The Four Seasons, The Shangri-La and now The St Regis are buildings which have become icons in our city. We have often found these four buildings are not only popular destinations for local Torontonians looking to downsize, but they are also very popular with foreign buyers looking to make Toronto their home or at the very least one of their homes.
With these four brands vying for the title of “Toronto’s most desirable Hotel Residences”; we have decided to put together a brief analysis to demonstrate how well these buildings are performing in the resale market. The statistics outlined in the chart below were taken from the Toronto MLS and may not be 100% reliable. However, they do demonstrate the increase in demand for this market segment year-over-year.
Hotel Residences | Historical Price Per Square Foot
The Four Seasons Private Residences
In 2018 the Four Seasons Private Residences performed quite well. In the two buildings situated at 50 Yorkville Ave and 55 Scollard Street in Yorkville; there were a total of 14 sales through the multiple listing service. The lowest priced suite sold for $912,000 and was a 1 bedroom with approximately 600 sqft and the highest priced suite sold in 50 Yorkville Ave for $4,575,000. The average price per square foot in both buildings did rise to approximately $1700 per foot; this leads the way in the luxury hotel residences sector.
The Residences at the Ritz-Carlton
The Ritz-Carlton saw a significant year-over-year increase in the average price per square foot. From approximately $1000 per square foot in 2017 to over $1400 per square foot in 2018 the building was one of the hottest commodities in the city. Demand for the legendary Ritz-Carlton brand and services were in both the local and foreign buyer markets. We found that people really resonate with this brand and this is what drove the year-over-year increase in prices in the building.
In 2018 we saw a total of 9 suites change hands. From a 1300 sqft one bedroom which sold at $1,425,000 to a spacious 3 bedroom suite which sold last summer for $6,250,000 all market segments at the Ritz-Carlton Residences saw increased demand.
The Shangri-La Residences
With 27 sales recorded on the Multiple Listing Service the Shangri-La Residences Toronto saw the most units change hands in 2018. From $859,000 to the sale of the $8,000,000 penthouse - The Shangri-La Residences had everything for everyone. With a spectacular lobby, the Shangri-la really brings in all people from around the city; whether its for Tea or an after work cocktail people tend to gravitate to this destination at all hours.
The Shangri-la in our opinion demonstrates one of the best entry points into the luxury market. We have not yet seen the average price per square foot pierce into the mid-$1000s and therefore there is still opportunity to buy into the building in the low $1000s a foot.
The St Regis Residences Toronto
Transformation is everywhere here. With the re-branding of the hotel complete, the St Regis Toronto is one of the city’s finest destinations. The suites have been selling off quickly from the excess of builder inventory; however some great opportunities still remain. On the MLS last year there were a total of 13 sales in the building. However, there were clearly a few more as the sale of the ‘Super’ Penthouse was not recorded on the Multiple Listing Service.
With the renovations of the Residences Lobby, Main Hotel Lobby, and Restaurant; the St Regis Residences is definitely open for business and represents one of the best luxury opportunities in Toronto. With prices still hovering around an average of $1200 a square foot there are some fabulous opportunities to buy into the building and receive a truly five star living experience.