InnVest Buys Hotel Grand Pacific In Victoria For Over $150M

Key Takeaways

• Deal valued at $150‑$160 M CAD (~$110‑$118 M USD)
• 304 rooms sold for over $500k per key
• Property includes 316k sq ft hotel space, 10k meeting area
• InnVest operates 90+ Canadian hotels, expanding footprint
• Transaction likely BC’s biggest 2026 hotel deal

Summary

Ontario‑based InnVest Hotels closed on the Hotel Grand Pacific in Victoria for an estimated $150‑$160 million CAD (approximately $110‑$118 million USD). The 304‑key, 316,000‑sq‑ft property sits on 1.67 acres and includes 10,000 sq ft of meeting space, a fitness club, retail units and a 218‑stall underground garage. The purchase price translates to over $500,000 per key, far above the BC Assessment value of $47.7 million CAD (~$35 million USD). The deal is poised to become the largest hotel transaction in British Columbia for 2026.

Pulse Analysis

InnVest Hotels' purchase of the Hotel Grand Pacific marks a watershed moment for the Pacific Northwest hospitality sector. Valued at roughly $110‑$118 million USD, the transaction dwarfs the provincial assessment of the asset, underscoring a willingness among Canadian operators to pay premium prices for strategically located, full‑service hotels. The 304‑key property, perched beside the BC Legislature and the Inner Harbour, offers a blend of revenue streams—from 10,000 sq ft of meeting space to a 13,000‑sq ft fitness club and a sizable underground parking facility—making it an attractive platform for value‑add initiatives.

InnVest, now the nation’s largest hotel operator with more than 90 properties, has been on an acquisition binge, recently spending $303 million USD on a 14‑hotel portfolio with Manga Hotel Group and exiting a $114 million USD stake in Choice Hotels Canada. The Grand Pacific acquisition fits a broader strategy of securing assets that can be rebranded or repositioned without existing franchise constraints. By acquiring the hotel free of brand and management obligations, InnVest can tailor the guest experience to emerging lifestyle trends, potentially narrowing the average daily rate gap with market leaders and boosting RevPAR.

For Victoria’s tourism economy, the deal could catalyze a competitive upgrade among downtown hotels, prompting renovations and rate adjustments across the corridor. Investors will watch closely as InnVest leverages the property’s ancillary revenue sources—retail leases and parking—to enhance cash flow. If the operator successfully revitalizes the Grand Pacific, it may set a precedent for similar high‑value, brand‑agnostic transactions across Canada’s secondary markets, reinforcing the country’s growing appeal to both domestic and international travelers.