FOR SALE Quality Inn Waddling Dog Hotel

FOR SALE
Quality Inn Waddling Dog Hotel
2476 Mount Newton X Road, Victoria BC
Prominent Landmark Near Airport Along Highway #17
Opportunity:
Description:
To acquire a stable branded hotel with a
strong food and beverage operation, well
established private liquor retail store and
additional development land.
2.85 acre site with 30 room branded hotel,
120 seat pub/sports bar, 100 seat restaurant
and liquor retail store, providing a total floor
area of 29,275 square feet, nicely updated.
Location:
Northeast corner of intersection of Patricia
Bay Highway (#17) and Mt. Newton X Road,
with 300+ feet of highway frontage.
Asking Price:
Reduced to $6,275,000
www.dtzvictoria.com
For information, please call:
Randy Holt
[email protected]
Cell: (250) 888-1621
Rick Pettinger
[email protected]
Cell: (250) 686-3686
DTZ Victoria Real Estate Ltd.
888 View Street
Victoria, BC V8W 1K2
Tel: (250) 382-3400
Fax: (250) 382-1333
FOR SALE
Quality Inn Waddling Dog Hotel
2476 Mt. Newton X Road, Victoria BC
Overview:
Victoria:
DTZ Victoria Real Estate Ltd. is pleased to present
the offering for sale of the Quality Inn Waddling
Dog Hotel by Balmoral Investments Ltd., owners
and operators of the hotel since 1990. This
landmark Victoria facility sits on 2.85 acres and
offers 30 well-appointed rooms, consistently strong
food and beverage operations, an excellent liquor
retail store, meeting rooms, ample parking and
additional land for expansion. With improved hotel
industry fundamentals ahead, the subject affords
an excellent opportunity for income growth and
capital appreciation.
Victoria is BC’s capital city and is located at the
southern tip of Vancouver Island with an extensive
and accessible shoreline that extends from Sooke
to Sidney and includes the Inner Harbour
downtown. Known as the “City of Gardens” and
boasting Canada’s most temperate climate,
Victoria is one of the most beautiful and livable
cities in the world.
Victoria Hotel Industry:
The region’s well educated population is served by
three post-secondary institutions, including the
University of Victoria (approximately 20,000
students annually, most from outside the City),
Camosun College (18,500 students, mostly local)
and Royal Roads University (2,775 students), all of
which have expanded steadily. They also
contribute to the City’s fast growing advanced
technology sector, which now directly employs
13,000 people and has annual revenue of more
than $3.0 billion.
The total population of the Capital Region was
376,422 in 2012 (BC Stats – January 2013). It is
projected that the population will reach 400,000 by
2020.
While the local hotel industry was slow to recover
from the impact of the 2008-09 global financial
crisis, the 2014 and early 2015 results provide
solid evidence that better times are in store for
local hotel operators. A markedly improved second
half of 2013 was sustained in 2014, raising the
City’s overall REVPAR average by 10% in 2013
and another 9% in 2014, which was the highest
level for this key metric on record. An even
stronger start to 2015 confirms that a cyclical
turning point has now been reached.
The City’s economy is stable and enjoys steady
growth. The tourist sector brings more than 3.5
million visitors annually and generates more than
$1 billion in local spending. The capital’s
substantial public service, large naval base, vibrant
construction and shipbuilding industries and
diverse service sector also provide solid long term
employment prospects, keeping the local
unemployment rate at just 5.2% in March 2015.
Going forward, Victoria’s economy and population
are expected to enjoy steady long term growth that
should
support
improved
hotel
industry
performance. Strong cruise ship traffic, continued
airport expansion and rising Asia Pacific tourism
will also stimulate demand. Any increase in “rubber
tire” traffic originating from the U.S., in step with
their sustained economic recovery, offers more
potential upside. On the supply side, the ongoing
repurposing of older hotel properties to alternate
uses is a trend that is expected to reduce market
inventory, the benefits of which will accrue to the
remaining transient accommodation stock.
Victoria REVPAR
It is notable that in 2013, the prestigious travel
publication Conde Nast rated Victoria as #17
amongst the best cities to visit worldwide in the
magazine’s Readers’ Choice Awards. Vancouver
Island was ranked as the #1 island in North
America and #16 worldwide.
Source: Chemistry Consulting Group Inc.
Tel. 250 382 3400
-2-
www.dtzvictoria.com
FOR SALE
Quality Inn Waddling Dog Hotel
2476 Mt. Newton X Road, Victoria BC
The Location:
The subject property is strategically positioned
along
the
Patricia
Bay
Highway
(#17)
approximately 12 kilometers south of the BC
Ferries terminal at Swartz Bay, 7 kilometers from
the Sidney ferry terminal (connecting to Anacortes,
Washington) and just 5 kilometers south of the
Victoria International Airport. The subject is the
nearest hotel to the Airport on the south side and is
the only zoned tourist accommodation property
with frontage along Highway 17 between Victoria
and Sidney.
Victoria
Airport
Subject
Future
Jesken Town
Centre Site
Highway 17 is the primary connection (north-south)
between the Swartz Bay ferry terminal, the Airport
and the core municipalities of Greater Victoria.
Daily traffic counts along Highway 17 nearest the
subject typically range from 30,000 to 40,000
vehicles per day throughout the year. From the
subject, it is approximately 20 kilometers to
downtown Victoria heading directly on Highway 17.
The Property:2
This fully serviced parcel of land provides a total
area of 2.85 acres or approximately 124,060 (+/-)
square feet. It has a slightly irregular configuration
and enjoys excellent exposure to the Patricia Bay
Highway with a total frontage of just over 300 feet.
Access is from Mt. Newton X Road, which affords
additional frontage to that arterial road of 243 feet.
The annual passenger volume at the Airport was
just over 1.65 million in 2014, 6.0% higher than the
previous year’s total. Growth forecasts by the
Airport Authority anticipate volume to reach the 2.0
million level over the next decade. The annual
passenger counts at Swartz Bay have been just
over 2.8 million in recent years and are expected to
have increased by 1.3% in fiscal 2015.
The topography is level and at street grade. The
site coverage of the existing building is relatively
low at just under 15%, leaving a large undeveloped
area for expansion in the northeast quadrant of the
site.
Access to the subject is facilitated by the signalized
intersection at Mt. Newton X Road, with a
dedicated advanced left turn lane for southbound
highway traffic and a right hand exit lane for
northbound motorists. A short left turn lane is
provided from Mt. Newton X Road to the subject’s
entrance driveway. Mt. Newton X Road is a key
east-west corridor connecting Highway 17 and the
adjacent Lochside Drive with the more populated
areas of Central Saanich to the west. Lochside
Drive is the scenic oceanfront route connecting to
Sidney.
The subject is roughly 300 meters from the ocean
shoreline to the east, offering limited views across
Cordova Channel to James Island from rooms on
the hotel’s top floor.
Tel. 250 382 3400
-3-
www.dtzvictoria.com
FOR SALE
Quality Inn Waddling Dog Hotel
2476 Mt. Newton X Road, Victoria BC
The Improvements:
The original building is a wood frame structure that
was constructed in the 1960s, then subsequently
expanded in 1980 and 1993, renovated in 1997
and again in 2010. The exterior finish is “Tudor”
style with stucco and wood trim. There are asphalt
shingles on the pitched roofs. Windows are
predominantly thermopane.
The hotel includes a three-storey structure at the
south end of the site, encompassing the lobby, the
administrative office, a large meeting room (the
“library”) and a total of thirty guest suites (six on
the main floor and twelve on each of the two upper
floors). This section is served by an elevator.
An attached single-storey wing extends along the
west side of the property and is accessible from
the lobby. This expansive area houses “Sherlock’s”
restaurant, the “Waddling Dog Bar and Grill”, the
large commercial kitchen, a breakfast café and the
“Waddling Dog Beer and Wine Shoppe”. The main
floor footprint is approximately 18,125 square feet
overall and the total gross floor area is estimated to
be 29,275 square feet.
Nine of the hotel rooms come with two queen-sized
beds, the others having one standard queen-sized
bed. All are well furnished and meet the applicable
Choice Hotels standards for the “Quality Inn”
brand. Twenty rooms have connecting doors to
enable their use as suites.
Tel. 250 382 3400
-4-
www.dtzvictoria.com
FOR SALE
Quality Inn Waddling Dog Hotel
2476 Mt. Newton X Road, Victoria BC
The Improvements:2
The cold beer and wine store was added in 1993
and is located at the north end of the building. It
comprises approximately 3,782 square feet,
including the large walk-in cooler.
The “Bar and Grill” is a modern attractive sports
pub, licensed for 120 seats, with two billiard tables,
dart boards, multiple flat-screen TVs throughout
and an outdoor patio (licensed for 20 more seats).
There are two other restaurant areas on site,
including a café (licensed for up to 57 seats)
adjacent to the sports pub and a larger 100 seat
facility (also licensed with a 30 seat patio) closest
to the lobby.
The main electrical service is 800 amp. All of the
hotel rooms have individual wall-mounted HVAC
units while the restaurant, pub and liquor retail
store have roof mounted HVAC units.
The grounds are attractively landscaped and
include a total of 100 parking stalls. There is a
large pylon sign in the southwest corner of the
property nearest the intersection.
Zoning: C-5 Zone, Tourist Commercial
Permitted uses include travel accommodation,
rural tourism use and visitor attraction use.
Accessory uses include administrative offices, art
gallery, caretaker’s dwelling, conference facility,
gift and souvenir shop, indoor and outdoor
recreational facilities, maintenance, storage and
laundry facilities, personal service use, licensed
premises, restaurant (excluding drive-through) and
retail store (limited to sale of merchandise as a
convenience to the traveling public).
Financial Performance:
The financial results for the subject property are
confidential and will be made available for review
by qualified parties upon request provided that a
confidentiality agreement is executed in the
required form. Please contact the listing agents for
details.
Tel. 250 382 3400
-5-
www.dtzvictoria.com
FOR SALE
Quality Inn Waddling Dog Hotel
2476 Mt. Newton X Road, Victoria BC
Parcel Identifier:
001-695-801
Legal Description:
Lot 4, Section 5, Range 4 East,
South Saanich District, Plan
3920, Except Part in Plans
30786 and 42490
Registered Owner:
Balmoral Investments Ltd.
Asking Price:
Reduced to $6,275,000
Cordova Channel
SUBJECT
For more information, please contact:
DTZ Victoria Real Estate Ltd.
Tel: 250-382-3400
Randy Holt, Vice President
Cell: 250-888-1621
Rick Pettinger, Managing Partner Cell: 250-686-3686
Information contained herein has been obtained from the owners or sources deemed reliable by DTZ Victoria Real Estate Ltd. While we
have no reason to doubt its accuracy, we regret that we cannot guarantee such information. All measurements and other information
herein should be independently verified by the reader or prospective user and are subject to the user’s own inspection of the premises
and due diligence work and to the user’s satisfaction with the results of such review.
www.dtzvictoria.com