Just four years after it opened, the Trump International Hotel & Tower and the Trump Residences in Toronto is on the market, with real estate company CBRE and receiver FTI Consulting Canada handling the sale.
FTI has set a minimum price of $298 million for the sale, and CBRE EVP Bill Stonewhich said the hotel is already receiving global interest from groups in Europe, Asia, the U.S. and some larger Canadian companies. Bids must be received by February 15, so the sale is likely to close before 2018 rolls around.
The hotel, Stonewhich said, is a “rare commodity,” although Toronto’s hotel market is “exceptionally strong” right now. Through the end of October 2016, occupancy in Toronto was up about 5 percent to 78 percent. “It was one of the strongest years on record. Average rates were up 11 percent up to $221. Downtown Toronto was the rate leader in the country,” Stonewhich said, but did not share the Trump hotel’s occupancy.
Hotel developer Talon International reportedly tried to sell the property after defaulting on the loan, which was originally issued by Raiffeisen Bank International AG in 2007, court documents show. JCF Capital acquired the loan on Oct. 3 last year and sent a notice to Talon two more times that month asking for repayment. The debt matured in December of last year and Talon has been in default since July 2, 2015, JCF Capital said.
In Toronto, CBRE has handled the sale of the Royal York, the Intercontinental and the Four Seasons.