Pacific Reach and Dilawri Group of Companies say they purchased The Ritz-Carlton in downtown Toronto 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.
Pacific Reach said it is an equal-share partner in the deal with Dilawri, an indication of Pacific Reach's commitment to the hotel sector. Pacific Reach also said it will be in charge of asset management.
"This partnership with Dilawri represents our shared vision of excellence, as we take steps to further enrich the guest experience and continue the Ritz-Carlton's legacy as one of the most prestigious luxury hotels in Canada," Pacific Reach CEO Azim Jamal said in a statement.
Jamal's company has experience owning and operating luxury hospitality assets, including the Rosewood Hotel Georgia in Pacific Reach's hometown of Vancouver.
Dilawri, privately owned and operated since 1984, is Canada's largest automotive group. It owns the largest stake in publicly traded Automotive Properties REIT.
Still, it has expanded its portfolio through a dedicated investment division that has interests in real estate and a range of diversified holdings.
"This acquisition also marks an exciting milestone in our dedicated investment division," Kap Dilawri said.
The new owners said they plan to enhance the property by updating its spa and wellness amenities, common areas and conference spaces.
For the record
A team led by Josh Sprague at Norton Rose Fulbright acted as legal adviser to Pacific Reach. Farris, led by Duncan Reid, acted as legal adviser to Dilawri. KPMG served as tax adviser to the partnership. CBRE represented the seller.